Sunday, September 9, 2012

Raghuram Rajan — The Heart of the US Election

A real debate is emerging in America’s presidential election campaign. It is superficially about health care and taxes. More fundamentally, it is about democracy and free enterprise....
Whatever the outcome of the election, the tension between democracy and free enterprise that is central to it does not bode well for either. A free-enterprise system that is sustained only by the moneyed power of the successful is not stable, and unlikely to remain vibrant for long.
The United States needs to restore the possibility of achieving the American Dream for its middle class, even while it reaffirms the historically light regulation and relatively low tax burden that have allowed enterprise to flourish. The virtue of democracy is that debate may lead to just such a consensus. We can only hope.
Project Syndicate
The Heart of the US Election
Raghuram Rajan
(h/t Kevin Fathi via email)

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