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What is the libertarian solution to crony capitalism?

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@ReasonVids

Welcome to Ask a Libertarian 2012 with Reason's Nick Gillespie and Matt
Welch. They are the authors of the book The Declaration of Independents:
How Libertarian Politics Can Fix What's Wrong With America, coming out in
paperback later this month. Pre-order:
http://www.amazon.com/The-Declaration-Independents-Libertarian-Politics/dp/1610391004

On June 12, 2012 Gillespie and Welch used short, rapid-fire videos to
answer dozens of reader questions submitted via email, Twitter, Facebook,
and Reason.com.

In this episode, they answer the question:
"What is the libertarian solution to crony capitalism? And, if it is possible to abolish crony capitalism, how do people prevent it from coming back?"

Produced by Meredith Bragg, Jim Epstein, Josh Swain, and Tracy Oppenheimer
with help from Katie Hooks.

To watch answers from 2011's Ask a Libertarian series, go here: http://www.youtube.com/playlist?list=PL32326BFC1F59AEFE

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