> The most compelling option was actually ethanol. But from the perspective of GM, Kitman wrote, ethanol wasn’t an option. It couldn’t be patented and GM couldn’t control its production. And oil companies like Du Pont "hated it," he wrote, perceiving it to be a threat to their control of the internal combustion engine. I'm generally an avid beliver in free markets as an agent for positive change, so these types of "r…
To me this is an example of 3 negative features of free markets, exacerbated by a kyriarchic system, but I think it's fixable with work. The three issues I see: One, the short-term market incentive was for them to have something patentable and controllable. Two, the money accrued to them but the harms fell to others, creating a huge negative externality. And three, free markets in goods tend to create markets in poli…
I like where you are going with all this, but I'll nitpick here that while tying politicians' wealth to the overall stock market in general reduces their incentive to legislate in favor of particular companies, it does provide them incentive to legislate in favor of corporate America in general. We don't need laws that help stock market participants. ~50% of Americans don't hold stock in any form, even through mutual funds or retirement accounts.
I don't know what the solution is. As long as rule making can disproportionately affect the rule maker's own personal wealth and wellbeing, you have a conflict of interest.