The TARP song, which shows people can find a way to laugh at most things (contains moderate bad language): TARP is the Troubled Asset Relief Program, a massive bailout in the USA. In a similar vein, The Spectator recently reported a truth about current monetary policy: QE — the ultimate […]
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Ending crony capitalism – how markets work
Crony capitalism — businesses capturing the state for commercial advantage, serving politicians and officials instead of the public — ought to be brought to an end. A prerequisite to that is a good understanding of how social cooperation in the market works. Israel Kirzner’s, How Markets Work: Disequilibrium, Entrepreneurship and […]
Read MoreCrony capitalism – how big players spoil social cooperation
Again and again, I hear managers ask government for stability. You can’t make plans for capital investment and business without expectations about the future. Government sets up big players in society which not only set expectations through tax and regulation, but which can change their minds, spoiling people’s plans, often […]
Read MoreContemporary crony capitalism – Living with Leviathan
For a contemporary and historical account of the scale of the state and its relations with nominally private business, I recommend David B. Smith’s excellent Living with Leviathan: Public Spending, Taxes and Economic Performance: In the last 90 years the proportion of national income spent by the UK government has increased […]
Read MoreHow crony capitalism happens – public choice theory
It’s common for politicians and officials to discuss “market failure” before setting out how the government will correct those failures. However, government fails too and with widespread, profound consequences for us all. Why? Dr Eamonn Butler’s Public Choice – A Primer explains how Public Choice Theory applies the methods of economics […]
Read MoreCrony Chronicles
I’ve just discovered Crony Chronicles – the cronyism resource, In an economically free society, the role of business is to create value for society by producing products and services that their customers consider beneficial. If they do this while using resources wisely, they make a profit, and societal wellbeing is […]
Read MoreWho Exploits You More: Capitalists or Cronies?
Via Learn Liberty, Who Exploits You More: Capitalists or Cronies? See also this short book on how political decisions come to be made: Public Choice – a Primer by Dr Eamonn Butler. Or watch Yes, Minister.
Read MoreLuigi Zingales – Capitalism for the People: Recapturing the Lost Genius of American Prosperity
This morning, I had breakfast with the engaging and insightful Luigi Zingales, Professor of Entrepreneurship and Finance at Chicago Booth and author of Capitalism for the People: Recapturing the Lost Genius of American Prosperity. Via Amazon: A rising star in economics takes a forceful and sometimes personal look at how […]
Read MoreThe CPS demonstrates smaller government is better for society
Via the CPS, a report and video, explaining that small (though not that small) government is better for society: Tim Knox, Director of the Centre for Policy Studies, commented: This paper shows that smaller government results in higher growth – making a mockery of the current austerity vs. growth division. […]
Read MoreBanker and economist to explain to Occupy St Paul’s how bankers falsify profits and misappropriate bailout funds
Tomorrow, Saturday December 10th at 1.30pm, my colleagues Gordon Kerr and Kevin Dowd will appear on the steps of St Paul’s Cathedral to explain how bankers falsify profits and misappropriate bailout funds for personal benefit. Kerr will set out: How derivatives transactions are structured to game flawed accounting rules and […]
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