Professor Krugman has trained his sights on fellow economists and the political leaders they have influenced. To embrace skepticism and enlighten is the duty of a scientist, and Krugman does both. Politicians should not rely on explanations that give only one cause. In particular, theories that equate complex national economies with companies should be viewed with caution, especially if the emphasis on competition leads to a downgrading of social and environmental standards and coordinated economic policy.
It can be demonstrated that the level of prosperity of national economies depends to a large extent on the productivity and to a lesser
Source URL: https://www.foreignaffairs.com/articles/1994-07-01/rule-based-competition