Crony Capitalism: the Russian immigrants’ point of view

Crony Capitalism:  the Russian immigrants’ point of view

By Ilya Galak

“I weep for the liberty of my country when I see at this early day of its successful experiment that corruption has been imputed to many members of the House of Representatives, and the rights of the people have been bartered for promises of office” –  Andrew Jackson

“Crony Capitalism is an outsourcing of American jobs plus walmartization of the whole country” – I.G.

Many people around the world think that USA is a capitalist society with a free market. Nothing can be more far from the truth. We Americans live in a crony capitalist society.

Crony Capitalism.  Just what is it and why is it so bad? Crony Capitalists are those who seek to win in the market place, not by honest competition, but rather through government favoritism in the forms of advantageous laws, tax regulations, and other such methods. This is the heart of corruption and special interest groups as we know them today. Some among them may not realize it yet, but average people, both Conservative and Liberal are equally against crony capitalism, but they just blame each other for its existence.

Liberals blame conservatives because the free market creates rich people and they can buy politicians off. So liberals propose more regulations to try and limit said rich people’s power. Conservatives blame Liberals for creating Big Government, which won’t allow businesses to survive and grow without strong political connections.

So what can be done in order to fix the system? How can we make politicians accountable to the people, not the special interest groups? How can we make the government work for us, not us work for the Government?

I am sure there are no easy answers, but let’s try to put something on the table and start the brainstorming: CLICK HERE

Let’s do the following:

  1. Create a brainstorm group as part of the “Make It In The USA” organization. Main goal is to propose / repeal legislation with the goal of creating good-paying manufacturing jobs on the local, state and federal levels.
  2. Group (everybody welcome to join): TBD. We can invite for consultation any expert as needed
  3.  Create policy proposals for the US Congress, State Senate / Assembly and City Council so our elected officials can push them.
  4. Make all these proposals presentable, easy to understand with the supporting photos and documents and make a unified push through our allies including the political action networks, social and mainstream media.
  5.  In addition to creating policy initiatives, the group will also identify and target laws which enable the outsourcing of American manufacturing and the killing of American jobs for repeal.

Shame on Us!!!!!

Staten Island, NY

Has anybody noticed the name of the company renovating the Staten Island Expressway? It is CCA otherwise know as China Construction of America. I’s ownership trail leads right back to the Chinese government and they have civil works contracts around the country (including federal buildings?). Shame on us!!!

In 2001, the company had to move its headquarters from the World Trade Center to Jersey City after the Sept 11, 2001, terrorist attacks.  But 2001 was also a turning point for the American subsidiary’s business in the US. It won its first public works contract in the nation to build the Santee High School and Technology Center in South Carolina, after shifting its focus and becoming a general contractor. Since then, it has completed about 100 projects all over the US and is currently undertaking about 10 projects in New York, South Carolina, Washington DC and the Bahamas.  After all this time, China Construction America has gradually established its reputation and is no longer a newcomer to the US construction market.  In New York State alone, it won bids for projects including the renovation of the Alexander Hamilton Bridge (between Manhattan and the Bronx), construction of the ventilation shafts for the No 7 Subway line extension in New York (a $57 million deal), and the Yankee Stadium Station. The list just goes on.



Brooklyn, NY

Forest City Ratner to sell 70% stake in Atlantic Yards to Chinese government-owned developer; largest such deal with Chinese backing.

First, a Russian billionaire whose path to wealth was launched during the shady days of post-Soviet privatization bought 80% of the Nets and 45% of the Barclays Center operating company.   Now, after Forest City Ratner got one tower started, a government-owned property developer from China, Greenland Holdings Group, is buying 70% of the remaining 15 towers in the Atlantic Yards project, the largest commercial real estate deal ever for a Chinese company in the United States.   And the latter seems a solid deal for developer Forest City Ratner, since it will continue to gain development fees and manage the project, hedging its risks. It likely can accelerate construction, thus responding to widespread criticism for the slow delivery of promised affordable housing.   In both cases, the bottom line is: after Forest City did the heavy lifting to get subsidies, tax breaks, and regulatory approval, gaining what they call in the real estate development business “entitlement,” Atlantic Yards became a pure investment opportunity, and global capital knows no boundaries, neither ethical nor geographic.   And that means public assistance from New Yorkers is helping the Chinese government earn profits.


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s