Unproductive entrepreneurship is increasingly common in America
Is America encouraging the wrong type of entrepreneurship? Yes, argue Robert Litan and Ian Hathaway, two economists, in a recent article in the Harvard Business Review. In their view, unproductive “rent-seekers”, who exploit special relationships with the government to secure public spending, or gain regulatory protection from competition at everyone else’s expense, are on the rise. On the other hand, productive entrepreneurship, which generates wealth by creating new and better products and services for everyone, is flagging.
Their charge feels timely: since he was elected president last November, Donald Trump has paid more than 40 visits to Trump corporation properties. His Mar a Lago club in Florida makes twice as much profit as it did two years ago. Family friends fill…Continue reading