EconTalk

Tyler Cowen on Big Business

Aug 19, 2019
Tyler Cowen, an esteemed economist and author with ties to George Mason University, challenges commonly held perceptions about big business in America. He promotes the idea that large corporations are underappreciated and defends the financial sector's role in innovation. The conversation delves into the ethical implications of business versus government, the dynamics of labor markets, and the nuances of consumer trust. Cowen also critiques crony capitalism while advocating for systemic changes to improve low-skilled worker conditions, offering a fresh and provocative viewpoint.
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INSIGHT

Big Business and Capitalism

  • Big businesses are often identified with markets, influencing public perception of capitalism.
  • This identification makes it crucial to understand big business to appreciate market dynamics.
INSIGHT

Business Virtue

  • Businesses generally don't coerce consumers, primarily relying on persuasion.
  • This makes them arguably more virtuous than government, fostering cooperation and predictability.
ANECDOTE

Consumer Exploitation

  • Consumers often exploit businesses through lenient return policies, demonstrating a shift in power dynamics.
  • While seemingly beneficial for consumers, this ultimately leads to higher prices for everyone.
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