On Point | Podcast Trump and trickle-down corruption
May 21, 2025
Darren Acemoglu, a Nobel Prize-winning economist from MIT, and Somitra Jha, a political economy expert at Stanford, dive into the normalization of corruption under Trump. They discuss the implications of his acceptance of luxury gifts and crypto dealings, questioning the erosion of trust in American institutions. The guests reveal how these trends reflect a broader cultural shift, undermining democracy and fostering disillusionment among citizens. Their insights highlight the urgent need for accountability to restore civic engagement and tackle the 'corruption virus' plaguing society.
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Corruption As Daily Life Example
- Meghna Chakrabarti shared an experience in India where a security guard demanded bribes just for retrieving a bag at the airport.
- This overt corruption was normalized as part of daily life and illustrates how corruption permeates daily society.
Top-Level Corruption Spreads Down
- Corruption at the top changes societal coordination and may lead others to also act corruptly.
- Apex politicians influence norms and their corruption spreads through strategic complementarities.
Corruption Damages Innovation
- Innovation thrives on trust in institutions that fairly support new entrants and competition.
- Corruption favors incumbents and connected firms, chilling innovation and damaging economic comparative advantage.