Oddbean

Democracy is good for the economy. Can business defend it? ========== Democracies thrive because they ensure public goods, manage markets effectively, and channel contestation into political compromise. Democratic decline is associated with economic instability, brain drain, stagnation, and kleptocracy. Business associations need to actively protect democratic institutions and engage in preserving electoral democracy. Democratization causes an increase in GDP per capita of 20-25%. Autocratic regimes pose economic risks to businesses, including retaliatory taxation, discriminatory access to government contracts, and extortionary demands. Business leaders have historically underestimated the consequences of supporting leaders uncommitted to democratic norms. Business can play a vital role in preserving democracy by recognizing the economic dangers of democratic erosion and organizing effectively in response. Business organizations should educate leaders about the economic value of democracy, promote best practices for political engagement, and coordinate with civil society groups to protect electoral democracy. #Democracy #Economy #Business #Autocracy #EconomicGrowth https://www.brookings.edu/articles/democracy-is-good-for-the-economy-can-business-defend-it/