By killing transparency and competition, crony capitalism is harmful to free enterprise, opportunity, and economic growth. And by substituting special interests for the public interest, it is harmful to democratic expression.
Interpretation
Crony capitalism undermines competition and transparency, negatively impacting free enterprise and democracy.
This quote highlights the detrimental effects of crony capitalism, which favors special interests over the common good, ultimately stifling competition and transparency in the market. By doing so, it hampers economic growth and restricts opportunities for individuals, while also eroding the foundations of democratic expression and public welfare.
In practice
During an economic conference, to emphasize the importance of fair competition in markets.
The U.S. should worry about the effects of its polices on the rest of the world. We would like to live in a world where countries take into account the effect of their policies on other countries and do what is right, broadly, rather than what is just right given the circumstances of that country.
Customers often value a good more when its price goes up. One reason may be its signaling value. An expensive handcrafted mechanical watch may tell time no more accurately than a cheap quartz model; but, because few people can afford one, buying it signals that the owner is rich.
The problem with forbearance is that it always looks like a good thing to do until it stops working.
Perhaps the hardest challenge has been to persuade the public, impatient for rapid growth, of the need to ensure stability first. Growth, it is argued, is always more important, regardless of the looming economic risks.
Too many years away from academia renders you pretty incompetent at research and teaching. So I had to go back.
The gap in India has always been between the promise and the execution.
Why does a public discussion of economic policy so often show the abysmal ignorance of the participants?
The last thing you want to do is raise taxes in the middle of the recession because that would just suck up and take more demand out of the economy and put businesses in a further hole.
Building new roads and bridges creates jobs. Growing our exports creates jobs. Reforming our outdated tax system and our broken immigration system creates jobs.
Many markets work best with little or no outside interference. But others - especially those subject to big 'externalities' - need a helping hand.
That's why the American Recovery & Reinvestment Plan won't just throw money at our problems, we'll invest in what works
The rich have markets, the poor have bureaucrats.
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