Entrepreneurial Innovation and Crony Corruption

It always starts with entrepreneurial innovators breaking new ground and establishing new avenues for the expression of individual liberty and private initiative. Then, as soon as some of the companies established by those innovators grow sufficiently large and influential, the biggest protection rackets operating in their respective territories stop fighting them and proceed to corrupting them with subsidies, “public contracts”, unofficial monopoly privileges, etc.

Battling Assumptions

In the first case, I am reflecting on a book that I am reading; The Truth Machine: The Blockchain and the Future of Everything, by Paul Vigna and Michael J. Casey. The premise is that it took many centuries for the current paradigm, double entry bookkeeping, to revolutionize the marketplace, but now that the effect of those who would game the system pretty well offsets the increase of those who honestly abide by the system, it is time to find a new, greed-proof paradigm.