crony_capitalism   71

« earlier    

Why the US economy isn’t as competitive or free as you think
November 14, 2019 | Financial Times | by Martin Wolf.

The Great Reversal: How America Gave up on Free Markets, by Thomas Philippon, Belknap Press RRP$29.95, 368 pages

It began with a simple question: “Why on earth are US cell phone plans so expensive?” In pursuit of the answer, Thomas Philippon embarked on a detailed empirical analysis of how business actually operates in today’s America and finished up by overturning much of what almost everybody takes as read about the world’s biggest economy.

Over the past two decades, competition and competition policy have atrophied, with dire consequences......America is no longer the home of the free-market economy, competition is not more fierce there than in Europe, its regulators are not more proactive and its new crop of superstar companies not radically different from their predecessors.

Philippon's argument:
(1) US markets have become less competitive: concentration is high in many industries, leaders are entrenched, and their profit rates are excessive.
(2) this lack of competition has hurt US consumers and workers: it has led to higher prices, lower investment and lower productivity growth.
(3) contrary to common wisdom, the main explanation is political, not technological: Philippon traces the decrease in competition to increasing barriers to entry and weak antitrust enforcement, sustained by heavy lobbying and campaign contributions.”....... the US economy has seen a significant reduction in competition and a corresponding rise in monopoly and oligopoly.

What should the US want? The answers, suggests Philippon, are: free entry; regulators prepared to make mistakes when acting against monopoly; and protection of transparency, privacy and data ownership by customers. The great obstacle to action in the US is the pervasive role of money in politics. The results are the twin evils of oligopoly and oligarchy. Donald Trump is in so many ways a product of the defective capitalism described in The Great Reversal. What the US needs, instead, is another Teddy Roosevelt and his energetic trust-busting. Is that still imaginable? All believers in the virtues of competitive capitalism must hope so.
antitrust  barriers_to_entry  books  book_reviews  campaign_contributions  Citizens_United  competitiveness_of_nations  crony_capitalism  dark_money  economics  economists  entrenched_interests  EU  FAANG  free_markets  French  gun_laws  healthcare  lobbying  market_concentration  monopolies  monopsony  oligopolies  oligarchs  regulators  Theodore_Roosevelt  uncompetitive 
21 days ago by jerryking
Jeffrey Edward Green - Rawls and the Forgotten Figure of the Most Advantaged: In Defense of Reasonable Envy toward the Superrich (2013) | American Political Science Review on JSTOR
This article aims to correct the widespread imbalance in contemporary liberal thought, which makes explicit appeal to the "least advantaged" without parallel attention to the "most advantaged" as a distinct group in need of regulatory attention. Rawls's influential theory of justice is perhaps the paradigmatic instance of this imbalance, but I show how a Rawlsian framework nonetheless provides three justifications for why implementers of liberal justice—above all, legislators—should regulate the economic prospects of a polity's richest citizens: as a heuristic device for ensuring that a system of inequalities not reach a level at which inequalities cease being mutually advantageous, as protection against excessive inequalities threatening civic liberty, and as redress for a liberal society's inability to fully realize fair equality of opportunity with regard to education and politics. Against the objection that such arguments amount to a defense of envy, insofar as they support policies that in certain instances impose economic costs on the most advantaged with negative or neutral economic impact on the rest of society, I attend to Rawls's often overlooked distinction between irrational and reasonable forms of envy, showing that any envy involved in the proposed regulation of the most advantaged falls within this latter category. - downloaded via iphone to dbox
politics-and-money  political_participation  inequality-wealth  regulatory_capture  political_philosophy  political_culture  tax_havens  Early_Republic  inequality  estate_tax  intellectual_history  inheritance  republicanism  Plato-Republic  elites-political_influence  Jefferson  Harrington  crony_capitalism  Europe-Early_Modern  fairness  article  Aristotle  social_capital  social_theory  Rawls  social_democracy  Machiavelli  Plato  inequality-opportunity  jstor  bibliography  ancient_Rome  regulation  justice  liberalism  egalitarian  regulatory_avoidance  interest_groups  legitimacy  deliberative_democracy  political_history  class_conflict  downloaded  education-elites  social_order  elites-self-destructive  Roman_Republic  ancient_Greece  republics-Ancient_v_Modern 
july 2017 by dunnettreader
One Firm Getting What It Wants in Washington: BlackRock - WSJ
By RYAN TRACY and SARAH KROUSE
Updated April 20, 2016

The Problem: BlackRock believed that the U.S. Federal Reserve was leaning towards designating it as a source of financial system risk, like other big banks, and as such, be “too big to fail”.

What Was At Stake: the designation “systemically important” would draw BlackRock in for greater oversight by the Federal Reserve which would mean tougher rules and potentially higher capital requirements from U.S. regulators.

The Solution: BlackRock didn't take any chances. The company began spending heavily on lobbying and engaging policymakers. Executives at the firm began preparing for greater federal scrutiny of their business in the months following the 2008 financial crisis. BlackRock aggressively prepared a counter-narrative upon discovered a Treasury Department’s Office of Financial Research report that asset-management firms and the funds they run were “vulnerable to shocks” and may engage in “herding” behavior that could amplify a shock to the financial system. The response took the form of a 40-plus-page paper rebutting the report. The firm suggested that instead of focusing on the size of a manager or fund, regulators should look at what specific practices, such as the use of leverage, might be the source of risks. While other money managers such as Fidelity and Vanguard sought to evade being labeled systemically important, BlackRock’s strategy stood out.
BlackRock  crony_capitalism  Washington_D.C.  risks  lobbying  too_big_to_fail  asset_management  advocacy  government_relations  influence  political_advocacy  policy  U.S._Federal_Reserve  systemic_risks  Communicating_&_Connecting  U.S.Treasury_Department  counternarratives  oversight  financial_system  leverage  debt  creating_valuable_content  think_differently  policymakers  policymaking 
april 2016 by jerryking
South Korea’s chaebol problem - The Globe and Mail
IAIN MARLOW - ASIA-PACIFIC CORRESPONDENT
SEOUL — The Globe and Mail
Published Friday, Apr. 24 2015

Economic observers suggest the chaebol are now thriving to the detriment of other players in the economy – hoarding profits, increasingly focusing on overseas factories, squeezing domestic suppliers, and preventing the growth of small and medium-sized enterprises (SMEs) that employ nearly 90 per cent of South Korean workers. There are also ongoing concerns about crony capitalism and the massive firms’ close relationship with the government.
chaebols  South_Korea  conglomerates  problems  family-owned_businesses  cronyism  crony_capitalism  The_One_Percent  political_elites  corporatism  supply_chain_squeeze  SMEs 
april 2015 by jerryking
Hyeng-Joon Park - Korea’s Post-1997 Restructuring: An Analysis of Capital as Power | forthcoming in Review of Radical Political Economics (2015) pp. 1-44 | bnarchives
This paper aims to transcend current debates on Korea’s post-1997 restructuring, which rely on a dichotomy between domestic industrial capital and foreign financial capital, by adopting Nitzan and Bichler’s capital-as-power perspective. Based on this approach, the paper analyzes Korea’s recent political economic restructuring as the latest phase in the evolution of capitalist power and its transformative regimes of capital accumulation. -- Keywords: differential accumulation dominant capital chaebols transnationalization strategic sabotage -- Subjects: BN State & Government, BN Institutions, BN Power, BN International & Global, BN Region - Asia, BN Business Enterprise, BN Value & Price, BN Crisis, BN Production, BN Conflict & Violence, BN Money & Finance, BN Distribution, BN Comparative, BN Capital & Accumulation, BN Policy, BN Class, BN Labour, BN Growth -- downloaded from author's blog to Note
article  international_political_economy  capital_as_power  globalization  Korea  East_Asia  20thC  21stC  economic_history  1990s  2000s  2010s  Asian_crisis  Asia_Pacific  international_finance  FDI  finance_capital  financialization  emerging_markets  oligopoly  chaebols  crony_capitalism  industry  production  capitalism  capitalism-systemic_crisis  capitalization  accumulation  distribution-income  distribution-wealth  cross-border  trade  productivity-labor_share  class_conflict  labor_share  Labor_markets  unions  violence  economic_growth  sabotage-by_business  business-and-politics  business-norms  power-asymmetric  public_policy  public_goods  corporate_finance  corporate_ownership  investment  banking  political_culture  economic_culture  economic_reform  economic_policy  democracy  opposition  downloaded  EF-add 
october 2014 by dunnettreader
Chris Dillow - Stumbling and Mumbling: Am I a Tory? - July 2014
Am I a Tory, or is Jesse Norman a socialist? I'm prompted to ask because the other day he reminded me of his superb lecture (pdf) on Burke and Oakeshott. What I mean is that, as Jesse says, both men, in their different ways, supported tradition against rationalism. This anti-rationalism, says Jesse, is "one of the central intellectual roots of conservatism through the ages." -- Jesse continues: Rationalism can be seen in totalitarian societies, which seek to capture and organize the staggeringly diverse potential of human beings, and frame it on some Procrustean bed". It certainly can. But for me, managerialist rationalism is also totalitarian, in the sense both that it wants to extend to places such as universities where it is unwarranted, and that it seeks to suppress diversity in favour of conformist careerism. So, it seems that me, Jesse, Burke and Oakehott have much in common. And, indeed, Jesse is well aware (pdf) that crony capitalism and excessive CEO pay are inconsistent with conservative tradition he praises. -- downloaded pdfs
political_economy  political_philosophy  political_culture  conservatism  Tories  Burke  Oakeshott  MacIntyre  managerialism  totalitarian  ideology  capitalism  power  crony_capitalism  corporate_governance  rationalist 
july 2014 by dunnettreader
In Lagos, the 1% Takes Stock
By NINA BURLEIGH APRIL 25, 2014

A burgeoning wealthy class is settling into one of Africa’s fastest-growing cities, attracting designers, world-class architects and a growing creative community that seeks to preserve its culture through art and fashion.
Nigeria  Nigerians  African  luxury  high_net_worth  Lagos  frontier_markets  cosmopolitan  crony_capitalism  The_One_Percent  political_elites 
april 2014 by jerryking
Paradise lost - FT.com
December 19, 2013 5:03 pm
Paradise lost

By Robin Wiggleswort

The Caribbean is suffering from crippling government debt, endemic crime and a middle-class brain drain that have contributed to an economic meltdown of alarming proportions...

Persaud blames an “anti-growth coalition” for the Caribbean’s plight, a tight-knit nexus of politicians, business interests and unions that benefit from the status quo – one of the invisible flaws of small states where everyone knows one another. “The Caribbean is at a crossroads, it desperately needs political leadership,” he argues. “It can overcome these challenges, as other small states have, but it requires courage.”

Some fear that the erosion of the local middle classes – both the backbone of civil society as well as the most demanding voters – eases the pressure on politicians to shape up. “The depletion of our brightest graduates, our middle class and some of our most enterprising workers has drained the foundations of our society,” laments Trevor Munroe, a Jamaican academic, former union leader and founder of National Integrity Action, an anti-corruption watchdog. “Remittances are a big plus, but the big minus is the weakening of society’s internal drivers for reform.”
Caribbean  criminality  brain_drain  emigration  small_states  anti-growth  anti-development  tourism  cultural_detachment  middle_class  leadership  courage  civil_society  crony_capitalism  business_interests  cronyism  demanding_voters  debt 
december 2013 by jerryking
The Self-Destruction of the 1 Percent -
October 13, 2012 | NYTimes.com | By CHRYSTIA FREELAND.

IN the early 14th century, Venice was one of the richest cities in Europe. At the heart of its economy was the colleganza, a basic form of joint-stock company created to finance a single trade expedition. The brilliance of the colleganza was that it opened the economy to new entrants, allowing risk-taking entrepreneurs to share in the financial upside with the established businessmen who financed their merchant voyages.

Venice’s elites were the chief beneficiaries. Like all open economies, theirs was turbulent. Today, we think of social mobility as a good thing. But if you are on top, mobility also means competition. In 1315, when the Venetian city-state was at the height of its economic powers, the upper class acted to lock in its privileges, putting a formal stop to social mobility with the publication of the Libro d’Oro, or Book of Gold, an official register of the nobility. If you weren’t on it, you couldn’t join the ruling oligarchy.

The political shift, which had begun nearly two decades earlier, was so striking a change that the Venetians gave it a name: La Serrata, or the closure. It wasn’t long before the political Serrata became an economic one, too. Under the control of the oligarchs, Venice gradually cut off commercial opportunities for new entrants. Eventually, the colleganza was banned. The reigning elites were acting in their immediate self-interest, but in the longer term, La Serrata was the beginning of the end for them, and for Venetian prosperity more generally. By 1500, Venice’s population was smaller than it had been in 1330. In the 17th and 18th centuries, as the rest of Europe grew, the city continued to shrink....several recent studies have shown that in America today it is harder to escape the social class of your birth than it is in Europe. The Canadian economist Miles Corak has found that as income inequality increases, social mobility falls...Businessmen like to style themselves as the defenders of the free market economy, but as Luigi Zingales, an economist at the University of Chicago Booth School of Business, argued, “Most lobbying is pro-business, in the sense that it promotes the interests of existing businesses, not pro-market in the sense of fostering truly free and open competition.”
business_interests  capitalism  Chrystia_Freeland  city-states  cronyism  crony_capitalism  depopulation  elitism  entrenched_interests  history  income_distribution  income_inequality  lobbying  locked_in  moguls  new_entrants  oligarchs  pro-business  pro-market  Renaissance  self-destructive  self-interest  social_classes  social_mobility  The_One_Percent  Venice  winner-take-all 
september 2013 by jerryking
Italian business: No way back (from crony capitalism) | FT.com August 2013
Northern Italy "friends and family" system of interlocking cross-holdings and outsized influence is being unwound as the ongoing crisis threatens contagion via ownership webs. Some guys fired, some unwinding like Fiat (except for its media holdings eg Corriere della Sera), and now some arrests. Will Italy adopt French model (protecting national priorities) or British (free market with governance norms) or Wild West by default? Or what's not listed as an option, reconfiguring the old game of insider power, just now with a new cast of characters.
Italy  business  corporate_governance  corruption  plutocracy  competition  crony_capitalism 
august 2013 by dunnettreader
Why Innovation Is Still Capitalism’s Star - NYTimes.com
By ROBERT J. SHILLER
Published: August 17, 2013

Edmund S. Phelps, a professor of economics at Columbia University and a Nobel laureate, has written an interesting new book on the subject. It’s called “Mass Flourishing: How Grassroots Innovation Created Jobs, Challenge and Change” (Princeton University Press), and it contains a complex new analysis of the importance of an entrepreneurial culture.

Professor Phelps discerns a troubling trend in many countries, however, even the United States. He is worried about corporatism, a political philosophy in which economic activity is controlled by large interest groups or the government. Once corporatism takes hold in a society, he says, people don’t adequately appreciate the contributions and the travails of individuals who create and innovate. An economy with a corporatist culture can copy and even outgrow others for a while, he says, but, in the end, it will always be left behind. Only an entrepreneurial culture can lead. ... In 1991, I started a business with Karl Case, an economics professor at Wellesley College, and Allan Weiss, a former student of mine at Yale. We called it Case Shiller Weiss, Inc., and it was devoted to an innovation we dreamed up. The idea was a new “repeat sale” home price index — which would track the changes in the value of the same houses over time.

At the time, this was an entirely new line of business. And, at first, that posed a problem: we were spectacularly unsuccessful in raising money.
Robert_Shiller  innovation  Colleges_&_Universities  Nobel_Prizes  capitalism  entrepreneurship  Obama  3-D  economists  books  corporatism  job_creation  crony_capitalism  indices 
august 2013 by jerryking

« earlier    

related tags

1990s  2000s  2010s  20thc  21stc  3-d  accumulation  advocacy  africa  african  american  ancient_greece  ancient_rome  andrew_fox  andrew_sorkin  angola  anthony_randazzo  anti-development  anti-growth  antitrust  aristotle  article  asia_pacific  asian_crisis  asset_management  at&t  auto_manufacturers  automobile  automobiles  bailout  bailouts  banking  banks  barack_obama  barriers_to_entry  bibliography  blackrock  book_reviews  books  brain_drain  broadband  burke  business-and-politics  business-norms  business  business_interests  cabals  campaign_contributions  capital_as_power  capitalism-systemic_crisis  capitalism  capitalization  caribbean  carlyle_group  carpe_diem  cars  cartels  casino_capitalism  celebrities  chaebols  chamber_of_commerce  charles_lane  chevy_volt  china  chinese  chrystia_freeland  citigroup  citizens_united  city-states  civil_society  class_conflict  cliques  coal  colleges_&_universities  communicating_&_connecting  competition  competitiveness_of_nations  conglomerates  congo  conservatism  corporate_finance  corporate_governance  corporate_ownership  corporatism  corruption  cosmopolitan  council  counternarratives  courage  creating_valuable_content  cree  criminality  cronyism  cross-border  cultural_detachment  dark_money  daughters  david_harsanyi  david_henderson  debt  debt_collection  debt_relief  deliberative_democracy  demanding_voters  democracy  depopulation  distribution-income  distribution-wealth  don_boudreaux  donald_trump  donations  downloaded  early_republic  east_asia  economic_culture  economic_growth  economic_history  economic_policy  economic_reform  economics  economists  education-elites  ef-add  egalitarian  egalitarianism  electric  electric_cars  elites-political_influence  elites-self-destructive  elitism  elon_musk  emerging_markets  emigration  energy  entrenched_interests  entrepreneur  entrepreneurship  environmentalism  estate_tax  eu  europe-early_modern  ex-im  exchange  export-import_bank  exports  faang  fairness  family-owned_businesses  fannie_mae  fdi  federal_reserve  finance  finance_capital  financial_crisis  financial_system  financial_times  financialization  fisker  fisker_karma  football  freddie_mac  free_market  free_markets  french  frontier_markets  future  gene_healy  general_motors  george_kaiser  george_will  gillian_tett  globalization  gm  goldman_sachs  government  government_relations  greece  green_subsidies  green_technology  gse  guanxi  gun_laws  harrington  healthcare  hedge_funds  high_net_worth  history  home_businesses  home_industry  hybrid  hybrid_electric  ideology  imf  income_distribution  income_inequality  indices  industry  inequality-opportunity  inequality-wealth  inequality  influence  inheritance  innovation  intellectual_history  interest_groups  international_finance  international_political_economy  internet  investment  ira_stoll  isp  italy  james_k._galbraith  jefferson  job_creation  john_stossel  joseph_stiglitz  jstor  justice  kgb  korea  labor_markets  labor_share  lagos  larry_summers  leadership  legislative  legitimacy  leverage  liberalism  light_bulbs  linda_beale_(tax_law)  loan_guarantee  lobbying  locked_in  luxury  machiavelli  macintyre  malfeasance  managerialism  manufacturers  market_concentration  markets  middle_class  misgovernance  mismanagement  misrule  moguls  monopolies  monopsony  nepotism  new_entrants  nfl  nicole_gelinas  nigeria  nigerians  nobel_prizes  oakeshott  obama  occupy_wall_street  oligarchs  oligopolies  oligopoly  opposition  oversight  ows  patrick_michaels  paul_gregory  peter_orzag  plato-republic  plato  plutocracy  policy  policymakers  policymaking  political_advocacy  political_culture  political_economy  political_elites  political_history  political_participation  political_philosophy  politics-and-money  politics  poor_governance  poverty  power-asymmetric  power  prices  princelings  pro-business  pro-market  problems  production  productivity-labor_share  progressivism  property_development  proquest  protectionism  public_goods  public_policy  quantitative_easing  rationalist  rawls  real_estate  regulation  regulators  regulatory_avoidance  regulatory_capture  renaissance  rent_seeking  republicanism  republicans  republics-ancient_v_modern  risk  risks  robert_shiller  roman_republic  rule_of_law  russell_roberts  russia  s._m._oliva  sabotage-by_business  scott_linicome  self-destructive  self-interest  serial_entrepreneur  sheldon_richman  small_states  smes  social_capital  social_classes  social_democracy  social_mobility  social_order  social_theory  socialism  soft_power  solyndra  south_korea  steve_jobs  subsidies  supply_chain_squeeze  systemic_risks  tarp  tax_havens  taxes  tesla  the_one_percent  theodore_roosevelt  think_differently  tim_cavanaugh  timothy_p._carney  todd_zywicki  too_big_to_fail  tories  totalitarian  tourism  trade  trade_adjustment_assistance  u.s._federal_reserve  u.s.treasury_department  uncompetitive  unions  venice  veronique_de_rugy  violence  wall_street  washington_d.c.  wealth  wendy_mcelroy  will_wilkinson  winner-take-all  world_bank 

Copy this bookmark:



description:


tags: