I usually find economist Robert Shiller’s commentaries resonant and insightful, but this one seemed more confusing than enlightening. The thrust of the piece is the concern that government activities to promote innovation can just as easily stifle it.
The piece introduces the notion of corporatism, from a new book by Ed Phelps. What means “corporatism”? It’s:
…a political philosophy in which economic activity is controlled by large interest groups or the government. Once corporatism takes hold in a society…people don’t adequately appreciate the contributions and the travails of individuals who create and innovate. An economy with a corporatist culture can copy and even outgrow others for a while…but, in the end, it will always be left behind. Only an entrepreneurial culture can lead.
To read the full, original article click on this link: Does the Government Stifle Innovation? I Don’t See It (To the Contrary…) | Jared Bernstein | On the Economy
