Good article. FYI there is a good article in the NYT about corruption in China and luxury retailers in New York. It’s about how at this time of year, just before the communist party meetings, Chinese officials and entrepreneurs come to New York to buy extravagant gifts, mostly luxury branded items that they will give away to win political favors.
When government officials and the wealthy start hanging around together, I don’t think its just because the politicians want to hang out with the rich and famous. There’s an agenda there. In our current environment, taxes and regulations are going up, but there will still be some industries and businesses that get tax breaks, subsidies, special contracts, etc. At the same time, the political machines need cash in order to run campaigns, make deals, etc. And the politicians themselves want to feather their own nests. So unfortunately, I believe this goes way beyond a search for social status and is just part of a culture of corruption.
What’s fascinating about the US as compared to other countries is that at the lower levels there is a complete lack of corruption – you would never think of giving a police officer $100 to get out of a ticket or a judge $5,000 to help you deal with a civil matter, even though that would be common in many countries. But at the top, “pay-for-play” is essentially institutionalized and considered normal.
