Attention Economy


Wednesday, April 3, 2019

Capitalism Requires Pro-Market (Not Pro-Business) Policies and Free Trade

The IMF adds to a chorus of concern about competition

A Delicate Moment for the Global Economy: Three Priority Areas for Action by Christine Lagarde, IMF Managing Director

Market-based mechanisms for health care, economic inequality and the environment have in many cases not even been given a chance
https://www.wsj.com/articles/hey-democrats-give-markets-a-chance-11554293438

How the free market, and not Wall Street, can ensure more Americans share in prosperity

Chicago economist Luigi Zingales on the distinction between ‘Pro-Market’ policies and ‘Pro-Business’ policies
“A pro-business policy favors existing companies at the expense of future generations. A pro-market policy favors conditions that allow all businesses to thrive without any favoritism. A pro-business policy defends domestic enterprises with favorable rates and treatment. A pro-market policy opens the domestic market to international competition because doing so would not only benefit consumers, but would also benefit the companies themselves in the long term, which will have to learn to be competitive on the market, rather than prosper thanks to protection and state aid. A pro-business policy turns a blind eye (often two) when companies pollute, evade, and defraud consumers. A pro-market policy seeks to reduce the tax and regulatory burden, but ensures that laws are applied equally to all.”

Too many people forget the contribution markets have made to human well-being

Poverty Reduction Rests on Trade