If you’re interested

Here’s what I think is a really thought-provoking piece on capitalism by  University of Chicago professor Luigi Zingales. There’s some red meat here for readers across the political spectrum, Dollar Bill to Chris, “Atilla” Fountain. Too long to summarize but if you like this sort of stuff, I recommend it.


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6 responses to “If you’re interested

  1. Inagua

    There is another contributing factor that the author overlooked — the very large number of public employees and the very substantial compensation they receive. Public employment is the antithesis of a meritocracy, yet is pays very well. This is a severe economic distortion, and it contributes to the social attitudes the author deplores.

  2. Zingales is full of common sense, something woefully lacking in Washington. His overarching argument is one of fairness, something woefully lacking on Wall Street.

    Somehow, Washington needs to regain common sense. With it, it will be able to enact legislation that promotes fair play. With fair play, America has a shot at regaining greatness.

  3. anon

    aaah, delving. fair play. since when is life fair? fair play is for a socialist society. capitalism is all about the food chain and making it to the top. i don’t want my government dictating fair play, ever. what incentive would anyone have of achieving if america were a land of fair play? it would be anything BUT great.

  4. AJ

    This illustration quite graphically displays the hierarchy of vulture capitalism: http://www.hermes-press.com/capitalism_afford.htm . Since there is no manufacturing base, the economy can never recover. It’s impossible to build an economy on Walmart associate jobs, hamburger flipping jobs and information age (selling get rich quick scams on the Internet) entrepeneurialism. God forbid we apply tarrifs, let alone offering tax incentives for offshoring, so American workers don’t have to compete against slave labor. Another idea might be to limit the number of boards an individual can sit on– they are, after all public companies, not privately held ones. It might also help to slow down the legislation process to a speed where it’s possible to actually read the legislation they’re voting on (“The more corrupt the state, the more numerous the laws.” — Tacitus). And lastly, the money has got to be taken out of politics so that congressmen making $177,00 a year don’t somehow mysteriously become millioniares.

  5. Well, bully for you, anon.

  6. DollarBill

    Solid piece, CF. Money quote “the bailout made the system suddenly look fundamentally unfair. Why should outsourced workers, whose only fault was to have entered the wrong sector, bear the burden of market discipline, while rich bankers were offered a government safety net? ” Why indeed?

    There you go again, Inagua. Public sector compensation is a red herring; the truly obscene salaries are those paid on the Street to predators who (as Newt Gingrich himself says) “figure out clever ways to loot companies” and immiserate workers. That is no one’s idea of genuine market capitalism…even the Selfish Goddess herself would probably gag at the way vulture capitalism has evolved into as system of pure, Darwininian greed, the worker be damned.