American Enterprise Institute scholar James Pethokoukis argues that corporations—unlike citizens who might deserve a social safety net—must be spurred by the ever-present fear of failure. Without the possibility of failure, innovation, efficiency, and growth are impossible. In many ways, crony capitalism, government protection of incumbent businesses, and other anti-competitive policies have led to the recent stagnation. The key for both America and Israel, Pethokoukis concludes, is to clear the way for competitive capitalism.
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