Luigi Zingales is a professor of entrepreneurship and finance at the University of Chicago Booth School of Business, a contributor to Business Class and a contributing editor of City Journal. This is the first of three excerpts from his new book, A Capitalism for the People: Recapturing the Lost Genius of American Prosperity, which will be published in June by Basic Books, a member of the Perseus Books Group.
"The U.S. has historically kept the financial sector in check through a combination of sound principles and serendipitous decisions. But as the financial system gained strength in recent years, it also gained political influence. In the last decade, it has become too concentrated and too powerful, which has damaged not only the economy but the financial sector itself."
"Worse, too big to fail creates a self-fulfilling prophecy: Shortsighted policy makers will always prefer the cost of a bailout to the cost of upsetting the market. As a consequence, the problem continues and expands."
- In our opinion: Despite alarming shift...
- My view: Drafting women a threat to religious...
- Richard Davis: What will Americans sacrifice...
- Derek B. Miller: It's my party and I'll decry...
- In our opinion: Politics and ISIS
- Jay Evensen: The IOC demonstrates again why...
- Letter: Cruz took a stand
- Letter: Acting presidential
- Letter: Guns in America 63
- In our opinion: Planned Parenthood... 49
- Richard Davis: What will Americans... 47
- In our opinion: Despite alarming shift... 34
- My view: What message does Melania's... 33
- Letter: Acting presidential 31
- Letter: Cruz took a stand 30
- Dan Liljenquist: Presidential politics... 30