The market is now more powerful than the state

posted by
August 10, 2011
by Adam Haslett  
Posted in Commentary

"The only sane conclusion is to open our eyes to the fact that finance capital is now bigger than the state. Sovereigns are limited by territory. Capital is not. Thus it can engage in what is known as regulatory arbitrage, seeking out the markets with the fewest restrictions and playing governments off each other to compete for the most favorable -- defined as the most lax -- regulatory environment, much as sports franchises extort tax breaks from municipalities with threats of moving to another city." [editor's note: This analysis, of course, ignores the fact that it is capital itself which seeks strict regulatory environments as entry barriers. The fact that it's joined in doing so by some useful idiots is irrelevant; we know who calls the state's tune - TLK] (08/10/11)  

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