From the chief economist at the International Monetary Fund

Rajan Raghuram G. and Luigi Zingales. 2004. Saving Capitalism from the Capitalists: Unleashing the Power of Financial Markets to Create Wealth and Spread Opportunity (Princeton: Princeton University Press).

276: “Capitalism’s biggest political enemies are not the firebrand trade unionists spewing vitriol against the system but the executives in pin-striped suits extolling the virtues of competitive markets with every breath while attempting to extinguish them with every action.”

4 comments so far

  1. Ian on

    Well, from the perspective of a firm and it’s managers, it is better to control the relevant product market than be controlled by it. So obviously there’s a disconnect between the perspectives of the managers and some economists. Far more economists need to do ‘fieldwork’ in firms to see how many of their pet hypotheses look silly; taking the market[s] for ‘liquid’ assets as paradigmatic of competition being one of them….

  2. Kafir on

    “Capitalism’s biggest political enemies are not the firebrand trade unionists spewing vitriol against the system but the executives in pin-striped suits extolling the virtues of competitive markets with every breath while attempting to extinguish them with every action.”

    An ahistorical game of semantics, no?

  3. juan on

    free market ideology vs monopoly building reality.

    ahistoric? no.

  4. Kafir on

    Juan, I agree with that, but I’m not backing down from my original assertion (I was being rhetorical with the term ahistorical)

    Our disagreement is axiomatic, (I started with the assumption that Freemarket=BS apologetics for hyper-capitalism) and methodological; based on the communitarian-libertarian battle of between studying individual and studying the system.

    I look at ‘free market’ and see a system that has crystallized in a form that values property rights above personal rights.

    I don’t see a battle between unionists and fat cats.

    Those are just people who have gamed the system as to end up at their station. The unionist can buy stocks in Exxon-Mobil, no?


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