By killing transparency and competition, crony capitalism is harmful to free enterprise, opportunity, and economic growth. And by substituting special interests for the public interest, it is harmful to democratic expression.
Interpretation
Crony capitalism undermines competition and transparency, negatively impacting free enterprise and democracy.
This quote highlights the detrimental effects of crony capitalism, which favors special interests over the common good, ultimately stifling competition and transparency in the market. By doing so, it hampers economic growth and restricts opportunities for individuals, while also eroding the foundations of democratic expression and public welfare.
In practice
During an economic conference, to emphasize the importance of fair competition in markets.
The U.S. should worry about the effects of its polices on the rest of the world. We would like to live in a world where countries take into account the effect of their policies on other countries and do what is right, broadly, rather than what is just right given the circumstances of that country.
Customers often value a good more when its price goes up. One reason may be its signaling value. An expensive handcrafted mechanical watch may tell time no more accurately than a cheap quartz model; but, because few people can afford one, buying it signals that the owner is rich.
The problem with forbearance is that it always looks like a good thing to do until it stops working.
Perhaps the hardest challenge has been to persuade the public, impatient for rapid growth, of the need to ensure stability first. Growth, it is argued, is always more important, regardless of the looming economic risks.
Too many years away from academia renders you pretty incompetent at research and teaching. So I had to go back.
The gap in India has always been between the promise and the execution.
Budget consolidation and economic growth are two sides of the same coin.
If bankers become overly conservative in response to past lending mistakes - or if examiners force such behavior - it will hurt bankers' own long-term interests and the economy in general.
War can really cause no economic boom, at least not directly, since an increase in wealth never does result from destruction of goods.
The benefit of appointing a hawkish central banker is the increased inflation-fighting credibility that such an appointment brings.
Credit markets were originally created to serve human needs; to provide businesses and individuals with capital to start or expand businesses or fulfill other financial needs.
Wall Street has turned the economy into a giant asset-stripping scheme, one whose purpose is to suck the last bits of meat from the carcass of the middle class.
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