The Gulfstream Economy: How Flattery Replaced Competition
Capitalism isn't the problem. Cronyism is.
In case you missed it, I spent an hour last weekend on Charlie Sykes’ To the Contrary podcast. We had a sprawling conversation that covered everything from the costs of war, to school cell phone bans, to whether anyone should earn more than $100 million (that last one might get me in trouble).
But one topic in particular has stuck with me since we finished recording: the difference between being pro-market and pro-business.
To many, these sound like the same thing — but they are in fact almost opposites. Markets, competition, and the innovation they foster are extraordinary. You need to look no further than North and South Korea — whose opposing economic systems have produced dramatic differences in wealth, health, and even physical height over the past 70 years — to see the genius of capitalism at work.
But businesses actually have a vested interest in undermining competition. Limiting competition is exactly how they protect and grow their bottom line.
In a truly pro-market world, political leaders set fair rules, allow companies to compete, and let the best products win. They don’t take calls from CEOs. They don’t even know their names. But with this White House, the companies that thrive are not the ones building the best products — they’re the ones sending the most flattering quotes to CNBC or flying Gulfstreams to Mar-a-Lago.
That’s not capitalism. That’s corruption.
Justin, it was this conversation last weekend that prompted me to sign up at the annual rate straight out of the gate. I’ve seen other conversations with you, so I was familiar with your style. I appreciate your ability to explain things and really appreciate the questions you pose. The $100,000, yes, but also what I think is particularly poignant presently, why only $1.776 million. He’ll go higher if he’s not stopped. And he’ll try again in some other way. Will it be higher, the same or lower? 🤔
This is why corporate reform needs to make capitalism democratic, with public boards and public beneficiaries, a redefinition of fiduciary responsibility to include the communities they're in and the workers who do the job.