Political and economic systems either allow exchange and resource allocation to take place through mutual agreement under a system of liberalism, or force them to take place under a system of cronyism in which some people have the power to direct the activities of others. This book seeks to clarify the differences between liberalism and cronyism by scrutinizing the actual operation of various political and economic systems. Examples include historical systems such as fascism in Germany between the world wars and socialism in the former Soviet Union, as well as contemporary systems such as majoritarianism and industrial policy. By examining how real governments have operated, this book demonstrates why—despite their diverse designs—in practice all political and economic systems are variants of either liberalism or cronyism. About the Authors Randall G. Holcombe is DeVoe Moore professor of economics at Florida State University. He received his PhD in economics from Virginia Polytechnic Institute and State University, and taught at Texas A&M University and at Auburn University before coming to Florida State in 1988. Holcombe is the author of twelve books and more than one hundred articles published in academic and professional journals. His books include The Economic Foundations of Government (1994), Public Policy and the Quality of Life (1995), From Liberty to Democracy: The Transformation of American Government (2002), and Entrepreneurship and Economic Progress (2007). His primary research areas are public finance and the economic analysis of public policy issues. Andrea M. Castillo is a program associate at the Mercatus Center at George Mason University. She attended Florida State University and received a BS in economics and political science in 2012. She blogs at Neighborhood Effects and is a columnist for The Umlaut.