The Third Pillar: Why we need to strengthen communities

Chicago Booth's Raghuram G. Rajan explains how his 2019 book “The Third Pillar” makes the case for giving more power to local communities.

[@gtcstorm40]

The system only worked for some for that 60-70 years. It was always a house of cards and full of injustice.

[@SamBrightSecond]

Unfortunately, our "strengthened" governments are no longer governments that work on behalf of the people, on behalf of communities, but instead are governments that work on behalf of the markets. I would argue, from the perspective of what is the ideal role for government, that our governments have in fact been weakened as markets have been strengthened, that the latter has been possible only as a result of the former. Our governments now are agents only of the markets and thus not even governments any more, in the true sense of the term. This is why communities have been left behind. In order to strengthen communities, we must first restore the role of government by weakening the influence of markets on it. The universe of markets and communities is a zero sum game. Mr. Rajan, like other believers in the primacy of markets, does not seem to recognize this paradigm. A true representation of the system is not three vertical pillars, but two vertical pillars (communities and markets) resting on a third horizontal pillar (government), much like a seesaw. At equilibrium, where communities are as strong as markets, the horizontal pillar (government) would be supporting the other two equally.

[@ishanmishra9383]

spot on buddy.

[@r.govindrajan9786]

Uh b

[@siddharthajain6944]

How Management of a company get rich even if the company is making loses while a shop owner cannot do that. We need to stop this as this will increase banks profits and provide lower rates of borrowing.