John Cochrane is a Chicago economist. He writes The Grumpy Economist blog. It’s great. I always knew Prof. Cochrane was sharp, but I saw him on a panel after the financial crisis and I realized he is more prescient than most. He also solves problems extremely logically.
Today he has a post up about predictions for the next four years. I largely agree with them, although I think the Republican House leadership will cave on taxes.
Here is a really sad, but important point.
Advice? If you run a business, get a lot of lawyers and lobbysists. He who writes the regulations will make a lot of money. He who does not will lose. Make sure you make the right political contributions and don’t say anything critical of those in power. You will need a discretionary waiver of something, and these rules are so huge and so vague, the regulators can do what they want with you. Don’t be the one to get “crucified” (EPA). We live in the crony-capitalist system that Luigi Zingales describes so well. Live with it. Political freedom requires economic freedom, taught us Milton Friedman. You don’t have the latter, don’t expect the former.
Click over and read the whole thing.