Abstract

Many theories have been put forth to explain the current ills of the U.S. economy and its lack of competitiveness, but they all miss the central truth--the business system's problems are self-made. In every case, business has been its own worst enemy. Corporate-government relations are at the core of this self-destructive tendency. Business has had a long tradition of lobbying government for policies that end up being against its own self-interest. This mixture of business strategy and business politics--the "Corporate State"--no longer works. Contrary to economists' prescriptions, the corporation's economic and political interests are far from identical. Business can no longer continue to blame government while at the same timelobbying for and supporting its destructive policies. It must instead embrace the enlightened self-interest that is Capitalism.