pistor39_Julia Demaree NikhinsonGettyImages_trump_inauguration_ceos Julia Demaree Nikhinson/Getty Images

The New Washington Consensus

If a picture is worth a thousand words, the image of Big Tech founders and CEOs filling the front row at Donald Trump’s inauguration is a manifesto. We have just watched private business take over the US government in broad daylight, and history suggests that this won’t end well.

NEW YORK – For decades, we have been told that government-operated businesses are bad for the economy. A staple of the “Washington Consensus” that emerged in the 1980s was that “private industry is managed more efficiently than state enterprises,” because the threat of bankruptcy keeps managers in private companies focused on the bottom line. Originally formulated for countries in Latin America and then applied during the post-communist transition in Central and Eastern Europe, the Washington Consensus has been the dominant economic policy paradigm ever since.

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