“Beyond rent-seeking, a corporation can engage in other behaviors long decried by classical liberals, behaviors that might be characterized as contra-capitalism.”
Cronyism … Rent-seeking … Regulatory capture … Special-interest politics … Strategic uses of government intervention … Many terms have described business lobbying within the up-for-grabs socioeconomic system of political capitalism where the political means replaces the economic means. [1] It results in what classical-liberal entrepreneur Charles Koch calls bad profit. [2]
But beyond rent-seeking, a corporation can engage in other behaviors long decried by classical liberals, behaviors that might be characterized as contra-capitalism. Importantly, the corporation might not recognize these behaviors as an explicit strategy (Enron did not; Tesla does not). These separable behaviors are complementary. And now, with a term, what was implicit can become explicit for the public policy and corporate-governance debate.…
Continue ReadingEditor Note: Three years ago, Randall Holcombe, the DeVoe Moore Professor of Economics at Florida State University, published an important essay in the Cato Journal, “Political Capitalism.” MasterResource is pleased to republish his summary as Part I of our four-part series. The lineup is political capitalism (today), contra-capitalism (tomorrow), and business-history scholarship (Wednesday and Thursday). Professor Holcombe’s contribution is also timely given the recent rent-seeking-friendly $1.3 billion, Republican/Democrat, 2,322-page Consolidated Appropriations Act of 2018.
———-
… Continue Reading“While political capitalism as an economic system has barely been recognized, the building blocks that form a theoretical foundation for political capitalism are firmly in place and well-accepted. In political science and sociology, the ideas of elite domination and biased pluralism are mainstream concepts that are a fundamental part of political capitalism.”
[Note this post is the most popular article ever published on Master Resource. It has been now been significantly updated. Go here to see the current version.]
Trying to pin down the arguments of wind promoters is a bit like trying to grab a greased balloon. Just when you think you’ve got a handle on it, it morphs into a different story and escapes your grasp. Let’s take a quick highlight review of how things have evolved with merchandising industrial wind energy.
1 – Wind energy was abandoned for most commercial and industrial applications, well over a hundred years ago. Even in the late 1800s it was totally inconsistent with our burgeoning, more modern needs for power. When we throw the switch, we expect that the lights will go on – 100% of the time.…
Continue Reading