However justified, more government intervention risks being counterproductive

  • 📰 TheEconomist
  • ⏱ Reading Time:
  • 73 sec. here
  • 3 min. at publisher
  • 📊 Qulity Score:
  • News: 32%
  • Publisher: 92%

The issue with states becoming involved in business is that regulations dampen animal spirits and preferred firms grow flabbier and less innovative

United Kingdom Headlines News

United Kingdom Latest News, United Kingdom Headlines

As this special report has argued, quite a bit. Today may turn out to be a high-water mark for business. Almost everywhere people are becoming more mistrustful of it. So are their political representatives. The upshot is that the state wants a greater say over what firms do, where they operate and how they are run. The anti-corporate sentiment makes it harder for businesses to defy calls for new rules or higher taxes.

But the incentives must spurn favouritism, spur dynamism and maintain openness. And many now being bandied about or enacted do not. Having buried the age of big government under Bill Clinton, Democrats are enthusiastically exhuming it, with even some Republicans cheering them on. Britain’s ruling Conservatives have lost their Thatcherite moorings. The, a project with a strong interventionist reflex from its inception, is giving in to it.

The second danger is subtler. As some firms and governments become chummier, others may conclude that they have no choice but to do the same—especially if cosiness seems to work. This could lead to a soft, self-imposed decoupling, even as traditional trade barriers also go up. “You are seeing flows of people, technology, capital all being curtailed,” observes Hank Paulson, America’s former treasury secretary. One European industrialist predicts, “The era of shortage will drive more egotism.

China is not doomed to failure as the Soviet Union was. Its economy is more sophisticated and, in pockets, genuinely innovative: look at Alibaba and Tencent, its digital titans. Yet its model is not a superior form of capitalism. For all its progress, China is poor by Western standards, leaving room for state-directed catch-up growth. The most impressive Chinese businesses, including in big tech, have thrived in markets that the state until recently kept mostly at arm’s length.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Translation, Businesses can't get away with cutting corners, working unsafely, paying shit wages, destroying employees terms and conditions, and profiteering. About time 'animal spirit' was dampened.

Risks being counterproductive to business but not to the people. Usually, regulation is exactly what people want.

ok

Oh god, not THAT old thing! 'Animal Spirits'! The law of the jungle, you mean!

Regulations also prevent corporate crime, which is on the rise. As your article says, firms may need 'incentives to do the right thing'. That's what regulations are - negative incentives. The profits of crime will always outweigh the carrots - that's why business need the stick.

the central bank has to increase interest, get out of the stock market, keep only bonds and Turkish lira for now DeItaone MarkMobiusReal BankofAmerica bankofengland Merkez_Bankasi Citi usd try 0.089 Lagarde federalreserve

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

John McEnroe slams Australia over Novak Djokovic deportation: 'Total bull****'John McEnroe has slammed Australia’s handling of the Novak Djokovic saga, calling it an ‘absolute joke’ and ‘total bull****’. The story of his life. WADR, John McEnroe HAS NO SAY ABOUT Australia COVID19 PROTOCOLS FOR VISITORS TO THEIR COUNTRY ESPECIALLY DURING A DEADLY pandemic ‼️ & NEITHER DOES Djokovic ‼️ GetVaccinated WearAMask AND STFU ‼️ AustralianOpen Australia 🙏🏽❤️ JohnMcEnroe 👇🏽 At LONG last ...... Somebody, being the one and only John McEnroe, from the Tennis World, has actually stood up and supported Novak Djokovic. I agree with every word of his statement. Democracy, is NOT democracy anymore. Democracy, has been weakened down to a very watery form.
Source: MetroUK - 🏆 13. / 82 Read more »

Northern Ireland’s plan for the environment ‘weak and flawed’Country at risk becoming ‘the dirty corner of Europe’ without more ambitious targets, say campaigners Northern Ireland is far too small to become 'the dirty corner of Europe'. That idea is almost as stupid as claiming a continued soft border between NI and Ireland poses a risk to the integrity of the EU's single market. Plain stupid claim, frankly. The rivers and the sea are full of animal waste and the Environment minister’s answer is to grow more chickens, pigs, cows and sheep for export to places which have far more space to grow their own food. Small is beautiful. Let’s keep it that way.
Source: The Guardian - 🏆 84. / 53 Read more »

MI5's intervention on China marks a watershed momentBy acknowledging that the Chinese Communist Party targets this country, we've made an essential step towards a better long-term strategy
Source: The Telegraph - 🏆 41. / 63 Read more »

‘Extreme stress’: Australian businesses risk going under due to impact of OmicronIndustry bodies say they face a ‘triple blow’ of staff shortages, a supply chain crunch resulting in higher costs and a sharp drop in consumer activity
Source: Guardian news - 🏆 28. / 68 Read more »

New Zealand closes borders to new arrivals over ‘unprecedented’ Omicron riskCitizens blocked from returning home after minister Chris Hipkins halts release of space in quarantine rooms, saying facilities are under ‘extreme pressure’ Full police enforced lockdown in 3...2...1. Words can neither qualify how helpful your guidance and advice has been to me. I am and will be forever grateful for all your advice and guidance during my enrollment on your platform SamAndCoTradin Oh NZ, you can run, but you can’t hide forever. Get your people double jabbed, boosted, and get your borders open. The sooner we all get used to living with Covid, the better everyone’s lives will be.
Source: The Guardian - 🏆 84. / 53 Read more »

Dairylea cheese ad showing child eating while upside down banned over choking riskAdvertising Standards Authority says advert attracted 14 complaints alleging unsafe behaviour They ban this but they won't ban obvious sexual-implied content on reality tv on prime time. & don't enforce strict anti-pornography laws when it is ruining society. snowflakes Maybe children should be banned from watching telly until they are 7 and understand what is reality and what fantasy?
Source: The Guardian - 🏆 84. / 53 Read more »