10. See Antoine Van Agtmael and Fred Bakker, The Smartest Places on Earth: Why Rustbelts Are the Emerging Hotspots of Global Innovation (New York: Hachette, 2016); James Fallows and Deborah Fallows, Our Towns: A 100,000-Mile Journey into the Heart of America (New York: Pantheon Books, 2018).
11. See Katz and Nowak, New Localism.
12. See Katz and Nowak, New Localism.
13. See Fallows and Fallows, Our Towns.
14. See Benjamin A. Austin, Edward L. Glaeser, and Lawrence H. Summers, “Jobs for the Heartland: Place-Based Policies in 21st Century America,” NBER Working Paper No. 24548, April 2018; Gilles Duranton and Anthony J. Venables, “Place-Based Policies for Development,” NBER Working Paper No. 24562, April 2018.
15. See Austin, Glaeser, and Summers, “Jobs for the Heartland.”
16. Ibid.
17. See, for example, Amy Goldstein, Janesville: An American Story (New York: Simon and Schuster, 2017).
CHAPTER 12: RESPONSIBLE SOVEREIGNTY
1. Alex Hern, “Fitness Tracking App Strava Gives Away Location of Secret US Army Bases,” The Guardian, January 28, 2018, https://www.theguardian.com/world/2018/jan/28/fitness-tracking-app-gives-away-location-of-secret-us-army-bases.
2. Raghuram G. Rajan and Luigi Zingales, “The Great Reversals: The Politics of Financial Development in the Twentieth Century,” Journal of Financial Economics 69 (2003): 5–50, available at http://faculty.chicagobooth.edu/luigi.zingales/papers/research/jfereversal.pdf.
3. Clyde Haberman, “Japanese Are Special Types, They Explain,” The New York Times, March 3, 1988, accessible at https://www.nytimes.com/1988/03/06/weekinreview/the-world-japanese-are-special-types-they-explain.html.
4. Simon Dawson, “Chlorine-washed Chicken Q&A: Food Safety Expert Explains Why US Poultry Is Banned in the EU,” The Conversation, August 2, 2017, http://theconversation.com/chlorine-washed-chicken-qanda-food-safety-expert-explains-why-us-poultry-is-banned-in-the-eu-81921.
5. Jon Swaine, “Bent Banana and Curved Cucumber Rules Dropped,” The Telegraph, July 24, 2008, https://www.telegraph.co.uk/news/worldnews/europe/2453204/Bent-banana-and-curved-cucumber-rules-dropped-by-EU.html.
6. Martin Wolf, “Globalization and Global Economic Governance,” Oxford Review of Economic Policy 20, no. 1, 2004.
7. See, for example, Ha-Joon Chang, Bad Samaritans: The Myth of Free Trade and the Secret History of Capitalism (New York: Bloomsbury Press, 2008).
8. Josh Lerner, “The Empirical Impact of Intellectual Property Rights on Innovation: Puzzles and Clues,” American Economic Review: Papers & Proceedings 99: 2, 343–48, 2009.
9. See Dani Rodrik, Straight Talk on Trade: Ideas for a Sane World Economy (Princeton, NJ: Princeton University Press, 2018).
10. See Douglas A. Irwin, “The False Promise of Protectionism: Why Trump’s Trade Policy Could Backfire,” Foreign Affairs 96 (May/June 2017): 45–56.
11. See Raghuram Rajan and Prachi Mishra, “Rules of the Monetary Game,” University of Chicago Working Paper, April 2018, http://faculty.chicagobooth.edu/raghuram.rajan/research/papers/Rules-of-game-mar-21-2016-3.pdf; and John B. Taylor, “Ideas and Institutions in Monetary Policy Making” (presentation), the Karl Brunner Distinguished Lecture, Swiss National Bank, Zurich, September 21, 2017.
12. See Arvind Subramanian, Eclipse: Living in the Shadow of China’s Economic Dominance (Washington, D.C.: Peterson Institute for International Economics, 2011).
CHAPTER 13: REFORMING MARKETS
1. This follows from work with Luigi Zingales.
2. Patricia Dermansky, “Should Australia Replace Section 181 of the Corporations Act 2001 (Cth) With Wording Similar to Section 172 of the Companies Act 2006 (UK)?,” 4, available at https://law.unimelb.edu.au/__data/assets/pdf_file/0003/1709832/60-Should_Austalia_replace_s181_of_the_Corporations_Act3.pdf.
3. Joseph A. Schumpeter, Capitalism, Socialism, and Democracy (New York: Harper, 1950), 84, 85.
4. Luigi Zingales, A Capitalism for the People (New York: Basic Books, 2010), and Luigi Zingales, “Towards a Political Theory of the Firm,” Journal of Economic Perspectives 31, no. 3 (Summer 2017): 113–30, https://doi.org/10.1257/jep.31.3.113.
5. Willard F. Mueller, “The Celler-Kefauver Act: The First 27 Years (A Study Prepared for the Subcommittee on Monopolies and Commercial Law of the Committee on the Judiciary, House of Representatives, 95th Congress, 2nd Session),” (Washington, D.C.: U.S. Government Printing Office, 1978), 17.
6. One of the concerns of the supporters of the Celler-Kefauver Act was that “increasing centralization of the private sector adversely affected small local communities whose business enterprises were controlled by large corporations headquartered in faraway financial centers.”
7. Allen N. Berger, Nathan H. Miller, Mitchell A. Petersen, Raghuram G. Rajan, and Jeremy C. Stein, “Does Function Follow Organizational Form? Evidence From the Lending Practices of Large and Small Banks,” Journal of Financial Economics 76, no. 2 (2005): 237–69.
8. See Jeremy C. Stein, “Information Production and Capital Allocation: Decentralized vs. Hierarchical Firms,” Journal of Finance 57, no. 5 (2002): 1891–1921.
9. Michele Boldrin and David Levine, “The Case Against Patents,” Federal Reserve Bank of St. Louis Working Paper Series 2012–035A, https://s3.amazonaws.com/real.stlouisfed.org/wp/2012/2012-035.pdf; Michele Boldrin and David Levine, Against Intellectual Monopoly (Cambridge, UK: Cambridge University Press, 2008).
10. Steve Jobs et al., Portable display device, USD670286S1, priority date June 01, 2010, and granted June 11, 2012.
11. “Can Genes Be Patented?,” Genetics Home Reference, U.S. National Library of Medicine (website), accessed August 07, 2018, https://ghr.nlm.nih.gov/primer/testing/genepatents.
12. “Seven Years a ‘Cobbler,’” Swiss Federal Institute of Intellectual Property (website), accessed August 07, 2018, https://www.ige.ch/en/about-us/the-history-of-the-ipi/einstein/einstein-at-the-patent-office.html.
13. See, for instance, Jaron Lanier, Who Owns the Future? (New York: Simon and Schuster, 2013), and Eric A. Posner and E. Glen Weyl, Radical Markets: Uprooting Capitalism and Democracy for a Just Society (Princeton, NJ: Princeton University Press, 2018).
14. See, for example, Luigi Zingales and Guy Rolnick, “A Way to Own Your Social-Media Data,” The New York Times, June 30, 2017, https://www.nytimes.com/2017/06/30/opinion/social-data-google-facebook-europe.html.
15. See Posner and Weyl, Radical Markets, or Lanier, Who Owns the Future?, for elaborations of arguments on data ownership.
16. Steve Eder, “When Picking Apples on a Farm With 5,000 Rules, Watch Out for the Ladders,” The New York Times, December 27, 2017, https://www.nytimes.com/2017/12/27/business/picking-apples-on-a-farm-with-5000-rules-watch-out-for-the-ladders.html?smprod=nytcore-ipad&smid=%E2%80%A6.
17. Michael J. Sandel, What Money Can’t Buy: The Moral Limits of Markets (New York: Farrar, Straus and Giroux, 2013).
18. See Michael Walzer, Spheres of Justice: A Defense of Pluralism and Equality (New York: Basic Books, 1983).
19. “Money in Film: Businessmen Are Always the Villains,” The Economist, October 16, 2015, https://www.economist.com/blogs/prospero/2015/10/money-film.
EPILOGUE
1. John Maynard Keynes, “Economic Prospects for our Grandchildren” in Essays in Persuasion, (New York: W.W. Norton & Co., 1963): 358–73.
ABCDEFGHIJKLMNOPQRSTUVWXYZ
INDEX
The page numbers in this index refer to the printed version of this book. The link provided will take you to the beginning of that print page. You may need to scroll forward from that location to find the corresponding reference on your e-reader.
Acemoglu, Daron, 94, 185
Adele, 193
affirmative action, 300–302
Affordable Care Act (Obamacare), 144, 214, 239–41
African America
ns, 137, 157–58, 229–31
Civil Rights movement and, 138, 157, 229, 230, 235
agglomeration economies, 220–21
aging populations, 260, 284, 286, 292–93, 324, 342–43, 348, 396
agriculture, 78, 121, 148–49, 152, 184, 275
AIDS, 183, 184
airlines, 161, 165, 166, 197–98
Alesina, Alberto, 137
Amazon, 178, 384
Ambedkar, B. R., 287
American Medical Association, 137, 207
Amish, 8
amoral familism, 14
Antitrust Paradox, The (Bork), 202
antitrust regulators, 202
apathy, 113–15, 347
Apple, 178, 182–83, 383
Arab Spring, 330
aristocracy, 54–56, 72, 78, 87
Aristotle, 21, 39, 40, 48
Arthashastra, 31
Augustine, St., 39
authoritarianism, xvii, xviii, 97, 106, 108–9, 112, 139, 160, 244, 253, 257, 274
legitimacy-seeking, 253
automobiles, 152, 179–80, 261
automation, xii, xviii, 3, 18, 84, 179, 180, 143–44, 175, 178, 185–87, 284, 314, 324
Autor, David, 185
Bacon, Francis, 41
Bakunin, Mikhail, 91
Banfield, Edward, 12–14, 227
Bank of England, 68, 69
banks, 15–16, 72, 104, 178–79, 209, 219, 381, 385, 386
Global Financial Crisis and, 237–39, 358
inflation and, 366
regulation of, 358–60
Baosteel Group, 253
Barry, Ellen, 19–20
Basel Accords, 358, 360
Basix, 336, 337
“beggar thy neighbor” policies, 364
“beggar thyself” policies, 364
Bell, Daniel, 257
Beveridge, William, 155–56
Beveridge Report, 155–56, 318, 319, 321
Bible, 119
usury and, 31–32, 34, 48
Billington, Elizabeth, 193
Bismarck, Otto von, 112, 132
Black Death, 40, 41–42
BoBos (bourgeois bohemians), 218
Bohannan, Laura, 7–8
Boldrin, Michele, 382–83
Boleyn, Anne, 54
Book of Rates, 63
borders, 290, 351–54, 371
Bork, Robert, 202
Bowling Alone (Putnam), 334
Bretton Woods system, 160, 169
Brexit, 242
Britain, see England; United Kingdom
Brooks, David, 218, 227
Bryan, William Jennings, 100
bubonic plague (Black Death), 40, 41–42
Burnham, Daniel, xxviii
Bush, George W., 158
Calvin, John, 47–49, 82
Calvinism, 47–49, 55, 82, 86, 218
Canada, 294, 298, 342, 368
cannons, 42–44, 51
capitalism, 145, 147
Calvinism and, 47–48
in China, 252–55
crony, 99, 106, 108–9, 257–58
Marxist view of, 88–90
Weber’s view of, 47
Capitalism for the People, A (Zingales), 200
caregivers, 319–20
Carlyle, Thomas, 83
cars, 152, 179–80, 261
Carter, Jimmy, 163, 165, 235
Catholic Church, 29, 42, 49–50, 57, 59, 66–67, 72
Councils of, 34
monasteries of, 54, 57, 72
Papal Revolution in, 38, 40
Reformation and, 40–41, 47, 49
reform in attitudes toward business and interest, 47–49
state and, 45–46
usury and, 34–42, 44–46, 49
wealth of, 44–45
Celler-Kefauver Act, 380
CEOs, 193–94, 198–99, 209
Chandragupta Maurya, 31
Charles I, King, 66
Chernow, Ron, 85
Chetty, Raj, xvi
Chicago, Ill., xxii, xxiii, 308, 312, 340–41
Pilsen community in, xxii–xxvi, 12, 298, 344, 381
Chicago Tribune, xxiii
chickens, 354–55, 357
children, 222–31
meritocracy and, 224–25, 228
China, xxviii, 42, 97, 144, 145, 147, 185, 245, 246, 291, 342, 352
aging population in, 260, 292
anti-corruption campaign in, 261, 265
capitalism in, 252–55
change in, 258–64
Communist Party in, 144, 247–67
construction sector in, 275
crony competition in, 257–58
Deng in, 249–52, 265, 278
Global Financial Crisis and, 258, 259
growth of, 258, 368–69
households in, 255–56, 259–60, 263–64
imports from, 185
income inequality in, 260
India compared with, 247–48, 267, 269, 270, 275–76
infrastructure in, 259
internet and, 266, 350
liberalization in, 248–67, 276
Maoism in, 247, 248–50
medieval, 20–21
meritocracy in, 257, 265
one-child policy in, 260
in Opium Wars, 349–50
path not taken in, 249–52
populist nationalism in, 276–79
social credit system proposed in, 266
state, markets, and democracy in, 264–67
technology and, 261–62, 278
Tiananmen Square protests in, 250–51
United States and, 278
Xiushui Market in Beijing, 255
Church, see Catholic Church
citizenship, 290, 295–99, 302
global, 369
civic nationalism, 297–99, 302
Civil Rights movement, 138, 157, 229, 230, 235
Clay, Lucius, 150
climate change, xii, 245, 284, 365, 396–97
Clinton, Hillary, 235
Coleman, James, 225
colleges and universities, 190–91, 220–21, 308–9, 340
credentials and, 233–34, 317
communications technology:
community and, 330–35
see also Information and Communications Technology (ICT) revolution; internet
communism, xvii, 91, 97, 145–47
in China, 144, 247–67
in France, 168
community(ies), xiii, xxvii, 1–22, 25, 243, 283, 285–87, 297, 303–4, 325, 392, 393, 394
alternatives and, 15–17
assets of, 339–41
in the balance, 107–40
benefits of, 327–29
common themes in revival of, 338
communications technology and, 330–35
competition between, 306–7, 329
conflict resolution in, 9–10
crime and drug abuse in, 343–44
dealing with failure in, 347–48
definition of, xiv
downsides of, 329
dysfunctional, xiii, xix, 12–15, 173, 227, 325, 378
economic segregation in, 307–9
economic value of, 11
Elberfeld system in, 129–31, 320
engagement in, 344–45
feudal, see feudalism, feudal communities
financing revival in, 346–47
Galena, 337–38, 339, 344
ICT revolution and, xviii–xx, 176, 184–88
importance of, xiv–xviii
and importance of location, 21
9–21
and incentive to change, 18–19
Indore, 335–37, 339, 344
infrastructure and, 309–11
insular, costs of, 19–21
leadership in, 339, 344–45
local government, xiv, xv, xvi, 11–12, 286, 305, 311–13
localizing powers and public services in, 306–13
and loss of faith in markets, 115–19
market adjustments and, 388–91
outside choice and, 15, 18, 19
people as assets in, 342–43
physically proximate, 1–4, 327–30, 335–45, 395
Pilsen, xxii–xxvi, 12, 298, 344, 381
as political training ground, xvii
positive roles of, 4–10
regulations and, 285, 304, 306–7, 341, 357
reinvigorating, xx–xxi, 327–48, 352, 395
relief efforts from, 131–33
safety net and, 127–38, 318–25
schools and, 119–25, 225–28, 232–34, 313–18
separation of markets and state from, xiv–xv
social relationships in, 7–8
sorting and, see residential sorting
state and, 303–25, 345–46
tax incentives and, 345
technology and, 119, 335, 344–45
trade and, xviii–xx, 335, 352
training and socializing of young in, 5–7
transactions in, 3, 8–9, 10–11
value of, 10–12
values in, and tolerance for markets, 390–92
varieties of, 2, 329–35
village, 4
virtual, 327, 329, 330
compass, 41–42, 43
competition, xxii, 52, 64, 71, 84–87, 89, 91, 105, 106, 108–10, 139, 145, 176, 207–8, 283, 374, 392, 393
between communities, 306–7, 329
curbs on, 138
enhancing, 379–86
European Union and, 208–9
monopolies and, see monopolies
non-compete agreements, 205, 206, 387
patent protection and, 383
preservation of, in U.S., 98–105
property rights and, 286
regulation and, 165, 387–88
scaring away, 203–6
computers, 117, 175, 185, 186, 314
see also Information and Communications Technology revolution; internet
Confessions (Augustine), 39
The Third Pillar Page 53