This is a concern for me because it raises costs for many things, leads to craptastic policies that enrich corporations instead of smaller businesses which in turn hurts the overall economy which in turn leads to lower yields for my index funds.
Additionally, bribes in the third-world, especially the Middle East, lead to unstable governments that aren't taking care of their citizens. This leads to the citizen's discontent which can manifest into fertile ground for terrorist organizations looking to recruit new people, and of course this can lead to more incidents of terrorists acts, which just sucks for everyone.
Welcome to crony capitalism. The only way to prevent this isn't more rules and 'better' government control, it's less government power over the economy. Every time you vote for more and better government control, it only leads to more power for the corporations that fund and direct the government involvement. Who are the experts that the government needs to tailor policies to in order to achieve a desired impact? The experts in the economy - the companies.
Stop, let them succeed on the merit of competition in a free market and not how well they can successfully lobby regulatory interests.
While at a surface level this argument might feel good, when you actually think about it, it doesn't make sense. The tax code is the single biggest source of special interest benefits. There's about a trillion bucks per year in carve-outs for various interests. So even without any government programs or regulations, we're paying off the people with the best lobbyists and biggest campaign donors. And they can argue that these tax code gifts are actually decreasing government control over the economy--pointing in the direction you are advocating for. When really it's just putting their fingers on the scale.
You have to have a government. And it has to do at least some things (like defense, courts, etc). And it's highly valuable for it to do others (like funding research in the public interest, public health, etc). The best way to make sure it serves all of our interests is for the people running it to be interested in serving all of our interests and not just the interest of the select few. You do that by having the campaigns powered by broad support from their constituents and not just big piles of cash from the donor class.
I never said to get rid of all government, that'd be ridiculous. I prefer a limited government, with the explicit roles assigned to it via the Constitution (courts, military, interstate commerce regulation, money supply, etc). The necessary stuff. When you start talking about nice-to-haves like Social Security, Medicare, the EPA, there's an inherent assumption that you're using government to provide these benefits at a cost. That cost, among other things, is reduced economic growth, reduced prosperity, and poverty. Central planning has been a historical failure time and time again. The marketplace does a far better job at allocating resources than government ever could. The only reasons socialism has ever been popular are under systems where you could receive benefits (other people's stuff) in exchange for giving someone, or a political party, power. That's bribery, that's really what's wrong with the political system because there's no counter-balance. It's why our government has grown and will continue to grow.
Plus, I feel like there's a misrepresentation about Capitalism, as if it doesn't serve the public good. That's a ridiculous argument. In order to gain in a system like capitalism (not crony capitalism) you need a voluntary exchange of services and good by both parties. It requires the producers, in order to gain a profit, to meet the needs of the public. Capitalism is the most moral system in the world, it works in concert with human nature. It rewards merit, not mediocrity. It encourages innovation, expansion, production.
It's why countries like Sweden have dramatically cut back social spending and regulatory burdens to encourage private industry growth, Capitalism. High social spending yields economic stagnation and it's why Europe is floundering and why they've been pushing low (or negative interest rates) to encourage growth. A country lives or dies by its long-term economic growth and we're happily sacrificing our future for today.