Samir’s Selection 02/23/2016 (p.m.)

  • Luigi Zingales is a professor of entrepreneurship and finance at the University of Chicago Booth School of Business.

    tags: DonaldTrump capitalism corruption cronyism conservative market openness propaganda USpolitics politics

    • Mr. Trump does not need rich donors. To his supporters, he appears to be a free-market evangelist.
    • If a cursory glance at his very vague platform — heavy import tax on China, a wall against immigration, etc. — is not sufficient to see how misplaced this trust is, look at Mr. Trump’s career.

      As a businessman Mr. Trump has a longstanding habit of using his money and power aggressively to obtain special deals from the government. For example, his Grand Hyatt Hotel in Manhattan was built with the benefit of a decades-long tax abatement obtained through government connections.

    • Finally, Mr. Trump has a long history of promoting eminent-domain abuses to expropriate private land he wanted.
    • He is, in short, the essence of that commingling of big business and government that goes under the name of crony capitalism.
    • We cannot blame voters for being confused about pro-business versus pro-market politicians. The Republican establishment deserves most of the responsibility.
    • Being pro-market means being in favor of competition and against excessive concentration, as Theodore Roosevelt was. Business executives are pro-market when they want to enter a new sector.
    • But when they become established in a sector, they favor entry restrictions, excessive licensing, distortive regulation and corporate subsidies. Those policies are pro-business (in the sense that they favor existing businesses), but they are harmful and distort a competitive market economy.
    • With the pretense of defending free markets, the Republican Party consistently supported big business. When did any Republican presidential candidate — other than Mr. Trump — speak in favor of some antitrust enforcement? When did he campaign for tougher enforcement against white-collar crime? When did anyone call for free trade in pharmaceuticals? Or for more competitive pricing of drugs bought by Medicare?

Posted from Diigo. The rest of my favorite links are here.


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