"I don’t want companies to do well because the CEOs cozy up to politicians. If entrepreneurs and corporations are going to be rolling in money, I want that to happen because they are providing valued goods and services to consumers.
I wrote about Bessen’s research last year. It’s very unsettling to think that companies make more money because of political connections than they do from research and development.
There are two reasons this is troubling.
First, it means slower growth because government intervention is undermining the efficient allocation of labor and capital that occurs with productive entrepreneurship.
Second, cronyism is very corrosive because people equate business with capitalism, so their support for capitalism declines when they see companies getting special favors.
I wish ordinary people understood that big business and free enterprise are not the same thing."
https://fee.org/articles/to-fight-cronyism-we-need-a-separation-of-business-and-state/
I wrote about Bessen’s research last year. It’s very unsettling to think that companies make more money because of political connections than they do from research and development.
There are two reasons this is troubling.
First, it means slower growth because government intervention is undermining the efficient allocation of labor and capital that occurs with productive entrepreneurship.
Second, cronyism is very corrosive because people equate business with capitalism, so their support for capitalism declines when they see companies getting special favors.
I wish ordinary people understood that big business and free enterprise are not the same thing."
https://fee.org/articles/to-fight-cronyism-we-need-a-separation-of-business-and-state/