Joe Biden’s Stakeholder Capitalism Is Not the Issue—Corruption Is

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September 9, 2020 Topic: Economics Region: Americas Blog Brand: 2020 Election Tags: CapitalismCorruptionAmerica2020Joe BidenDonald Trump

Joe Biden’s Stakeholder Capitalism Is Not the Issue—Corruption Is

Capitalism, like nuclear power, is an excellent boon, but is one that must be properly regulated for it to be helpful and not harmful.

The Securities and Exchange Commission (SEC) must be given real teeth. In 2011, the New York Times reported that an analysis of SEC enforcement actions over fifteen years found fifty-one cases in which nineteen Wall Street firms had broken antifraud laws. Their punishment amounted to a promise to never to repeat the offensive acts. When the same firms were caught again, they were allowed to get away with a renewed promise to mend their acts. These examples illustrate the extent to which making enforcement effective must be a major part of the drive to keep capitalism from breaking out of the containing capsule, so it can thrive.

Amitai Etzioni is a University Professor and professor of international affairs at The George Washington University. He is the author of many books, including The Moral Dimension: Toward a New Economics.

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