Thursday, March 12, 2020

March 11, 2020 - Coronavirus Diaries: I Charter Private Jets. Business Is Booming

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TradeBriefs Editorial

From the Editor's Desk

The Business Case for Saving Democracy

Why free markets need free politics

Any single entity - whether it's business, government, or labor unions - can become too powerful in the absence of countervailing power. The result is often an extractive system, one in which institutions concentrate political and economic power in the hands of a powerful elite that runs the state (and the market) for its own benefit. Such societies are characterized by patronage networks, weak property rights, and widespread monopolies. China, Angola, North Korea, and Turkmenistan are examples of nations with extractive institutions.

But when a country's major institutions - both economic and political - are inclusive and in balance with one another, society flourishes. Inclusive economic institutions support the effective functioning of a free market, while inclusive political institutions enable everyone to participate in the political process and to monitor and control the government. The United States, Germany, Chile, South Korea, and Japan are all classic examples of societies with inclusive institutions.

Continued here

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