The Project for the Study of American Capitalism

The Project for the Study of American Capitalism

Created in the wake of the 2008 financial crisis, and the government’s subsequent responses, the Project for the Study of American Capitalism at The Mercatus Center is a research program responding to the increased concern about the role of political favoritism in American business.  The project explores the implications of this emerging character of the economy, examining the effects it has on the standard of living in the United States and public perceptions of the legitimacy of government and business. Does it make any difference to average Americans whether ours is a more or less free market? And what can policymakers do to ensure competition and to commit in a credible way to equality of opportunity?

Drawing on hundreds of academics from around the world, the Project for the Study of American Capitalism helps scholars and policymakers investigate the nature of these problems and identify real and sustainable solutions.

Research

Christopher Koopman, Thomas Stratmann, Mohamad Elbarasse | May 19, 2015
Thirty-six states and the District of Columbia currently limit entry or expansion of health care facilities through certificate-of-need (CON) programs. These programs prohibit health care providers from entering new markets or making changes to their existing capacity without first gaining the approval of state regulators. Since 1972, Michigan has been among the states that restrict the supply of health care in this way, with 18 devices and services—including acute hospital beds, magnetic resonance imaging (MRI) and positron emission tomography (PET) scanners—requiring a certificate of need from the state before the device may be purchased or the service offered.
Adam C. Smith | May 19, 2015
In this paper I explain how the Department of Health and Human Services has taken on a powerful coordinating role in the provision of health care as a result of the Patient Protection and Affordable Care Act. This paper analyzes the unfurling of that act using the Bootlegger–Baptist model of political economy. By tracing the development of the law and its effect on how health care is delivered, the analysis shows that economic interests became coordinated through the efforts of the White House and the central “televangelist” agency, the Department of Health and Human Services. This development will inevitably result in bureaucratic decisions replacing individuals’ choices as the agency takes on an increasingly active and interventionist role in how health care is provided.
Christopher Koopman, Thomas Stratmann, Mohamad Elbarasse | May 11, 2015
While CON programs were intended to limit the supply of health care services within a state, proponents claim that the limits were necessary to either control costs or increase the amount of charity care being provided. However, 40 years of evidence demonstrate that these programs do not achieve their intended outcomes, but rather decrease the supply and availability of health care services by limiting entry and competition. For policymakers in Missouri, this situation presents an opportunity to reverse course and open the market for greater entry, more competition, and ultimately more options for those seeking care.
Christopher Koopman, Thomas Stratmann, Mohamad Elbarasse | May 05, 2015
While CON programs were intended to limit the supply of health care services within a state, proponents claim that the limits were necessary to either control costs or increase the amount of charity care being provided. However, 40 years of evidence demonstrate that these programs do not achieve their intended outcomes, but rather decrease the supply and availability of health care services by limiting entry and competition. For policymakers in South Carolina, this situation presents an opportunity to reverse course and open the market for greater entry, more competition, and ultimately more options for those seeking care.
Veronique de Rugy, Diane Katz | Apr 15, 2015
Ex-Im Bank advocates emphasize its importance to small businesses and economic growth. A new analysis of government data reveals that Ex-Im Bank’s top 10 overseas buyers are large corporations that primarily purchase exports from multinational conglomerates. Ex-Im Bank’s small business narrative is challenged by the fact that the buyers receiving the most subsidies are—like the exporters—major corporations.
Jayson L. Lusk | Apr 08, 2015
In a new study based on empirical research for the Mercatus Center at George Mason University, agricultural economist Jayson L. Lusk concludes that the reduction or elimination of subsidized crop insurance, SNAP, and ethanol production mandates would reduce food prices for many consumers, benefit food producers who are not heavily subsidized by the government, and provide an overall economic benefit to taxpayers across the United States by potentially decreasing taxes.

Testimony & Comments

Veronique de Rugy | Mar 24, 2015
Policymakers who are interested in supporting the entrepreneurs and companies that will deliver the next generation of energy supplies and products should focus their attention on correcting the federal government’s hostile tax climate and dispense with the futile hopes of outsmarting the marketplace.
Christopher Koopman, Scott Eastman | Dec 01, 2014
Focusing on outcomes, rather than outputs, would give theaters more freedom to adjust the amount of devices they need to purchase based on the number of disabled patrons they actually serve.
Veronique de Rugy | Jun 25, 2014
The Bank has long outlived its purpose and cannot manage to meet the standards of the new missions that have been developed to validate its existence. For policymakers who have the facts, the choice is clear: the Export-Import Bank must go.
Veronique de Rugy | Jul 18, 2012
The Department of Energy’s loan guarantee programs have been the focus of much public attention since energy companies Solyndra, Beacon Power, and Abound went bankrupt, leaving taxpayers to shoulder hundreds of mil- lions of dollars in loan guarantees. The evidence strongly suggests that these programs fall short of their stated goals of developing clean energy and creating jobs.
Todd Zywicki | Jul 10, 2012
Much of the government’s political intervention in the bankruptcy cases appears to have been motivated to benefit the UAW rather than the companies themselves over U.S. taxpayers, who put billions of dollars at risk to fund the bailouts.
Veronique de Rugy | Jun 19, 2012
For obvious reasons, more than any other recent events, the waste of taxpayers’ money due to Solyndra’s failure has attracted much attention. However, the problems with loan guarantees are much more fundamental than the cost of one or more failed projects.

Speeches & Presentations

Charts

Veronique de Rugy, Diane Katz | May 21, 2015
The charter of the US Export-Import Bank is set to expire on June 30 unless it is reauthorized by Congress. Scare tactics aside, the end of Ex-Im would not mean the loss of thousands of American jobs. Economists have long understood that subsidies doled out by government credit agencies such as the Ex-Im Bank are not merely unnecessary: they can actually harm the economy. In their quest to keep the subsidies flowing, proponents of the bank are claiming that failure to reauthorize its charter would lead to massive job losses. This blatant fearmongering has succeeded in causing concern among some lawmakers.

Experts

Videos

Matthew Mitchell | May 13, 2015
Saying goodbye to state certificate-of-need (CON) laws is one of the first steps a state can take to allow better health for more people at lower cost year after year. Learn more at mercatus.org/con.

Podcasts

Christopher Koopman | May 11, 2015
Certificate of Need (CON) laws prohibit qualified health care providers from entering new markets, adding services, or expanding without approval from state regulators. Chris Koopman analyzes the impact of CON laws on North Carolina hospitals for WPTF.

Books

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