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.
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
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