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Notices
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Sitaraman V Iyer (not verified)
17th July 2012 | 1:22am

Mostly disagree with the article.
Corporation should have ideally a very minor role to play in capitalism.
Because corporation invariably leads to a very dangerous form of capitalism viz crony capitalism.Price collusion, hoarding of resources, insider trading are generally the results of corporation.

Your article suggests that in communism, a committee of government officials ends up taking decisions for buyers. Something similar happens when corporation enters capitalism. For eg OPEC committee.

America is a great example where all forms of capitalism coexists together.

Think of the tech industry where the clear rule of the game is survival of the fittest. Apple, Google, Microsoft and some ordinary tech start up all fighting to make the next big thing which would change the world. A clear case of creative capitalism. One of the primary reason that the best technology( be it the PC, Tablets ) invariably comes out of America is because of the encouragement of this culture.

I think of the entire financial industry as examples of crony capitalism .The industry seems to have lost its entire identity in the race to make big bucks. Insider trading, Leveraged bets, Changing the rules of the game seems to have become the norm.

They caused the entire meltdown with leveraged bets on the housing sector. How were they allowed to take these leveraged bets in the first place. Well the industry changed the rules by lobbying with regulators.I find it funny that there is still a lot of resistance out there from big banks to separate the investment banking and the normal lending divisions of the bank .

My overall view is that corporation has its place in capitalism but should definitely not be encouraged.