<p>In a nutshell, pro-business policies help currently existing businesses and their shareholders. Pro-market economies are those that follow the tenets of the free market - competition, no barriers to entry and so on. Pro-business policies may not imply a pro-market environment.</p>

<p>This is discussed at length for the case of India in <a href="https://www.imf.org/External/Pubs/FT/staffp/2004/00-00/rodrik.pdf" rel="nofollow noreferrer">Rodrick, D. and Subramanian, A., 2004. From “Hindu growth” to productivity surge: the mystery of the Indian growth transition, <em>NBER Working Paper Series</em>, WP 10376</a>.</p>

CC BY-SA 3.0
2018-01-25T16:30:39.593Z
Isn't it ironic that the economist from the OP is suggesting even more interference by the very institutions that create the pro-business over pro-market environment to begin with. The end result will most assuredly be an even more pro-business and less pro-market environment.
Dunk
CC BY-SA 3.0
2018-01-24T09:32:14.970Z
2018-01-24T09:32:14.970Z
android16.5
<p>In a recent interview I watched a economist say something along the lines of:</p>

<p>"There is a distinction between being pro-business and being pro-market. There should be rules in place so that businesses can compete in a way that is good for the economy and not just good for their shareholders."</p>

<p><strong>Question:</strong> What is this distinction exactly? In other words, what is he probably referring to?</p>

<p>The only thing that comes to mind when I think about that statement is how many corporations are using large amounts of profits to buy back their shares as opposed to investing in capital. Am I on the right track, or is there more to it than that?</p>

CC BY-SA 3.0
2018-01-22T13:32:33.503Z
What can we say about profits in a perfectly competitive market in long-term equilibrium?
410 gone
CC BY-SA 3.0
2018-01-22T17:36:42.167Z
@EnergyNumbers If I'm not mistaken, the profits would approach zero. The economist never mentioned which market he was talking about. I presume he was referring to the economy as a whole. In the case of the US, there are some markets that are saturated enough to be considered near perfect, however I'm not sure how this generalizes in the grand scheme of things. Correct me if I'm wrong though
Arash Howaida
CC BY-SA 3.0
2018-01-22T18:01:55.403Z
ok, so given that, do you see how there might be a distinction between being pro-business and pro-market?
410 gone
<macroeconomics><markets><regulation>
What's the Difference Between Being Pro-business and Being Pro-market?
Arash Howaida
# What's the Difference Between Being Pro-business and Being Pro-market?

(Asked by: username_0 on 2018-01-22)

In a recent interview I watched a economist say something along the lines of:

"There is a distinction between being pro-business and being pro-market. There should be rules in place so that businesses can compete in a way that is good for the economy and not just good for their shareholders."

**Question:** What is this distinction exactly? In other words, what is he probably referring to?

The only thing that comes to mind when I think about that statement is how many corporations are using large amounts of profits to buy back their shares as opposed to investing in capital. Am I on the right track, or is there more to it than that?

**Tags:** macroeconomics, markets, regulation

> **Comments:**
> **username_1**: What can we say about profits in a perfectly competitive market in long-term equilibrium?  
> **username_0**: @EnergyNumbers If I'm not mistaken, the profits would approach zero. The economist never mentioned which market he was talking about. I presume he was referring to the economy as a whole. In the case of the US, there are some markets that are saturated enough to be considered near perfect, however I'm not sure how this generalizes in the grand scheme of things. Correct me if I'm wrong though  
> **username_1**: ok, so given that, do you see how there might be a distinction between being pro-business and pro-market?  

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## 1 answers

### Answer by username_2 on 2018-01-24. Score: 1

In a nutshell, pro-business policies help currently existing businesses and their shareholders. Pro-market economies are those that follow the tenets of the free market - competition, no barriers to entry and so on. Pro-business policies may not imply a pro-market environment.

This is discussed at length for the case of India in [Rodrick, D. and Subramanian, A., 2004. From “Hindu growth” to productivity surge: the mystery of the Indian growth transition, *NBER Working Paper Series*, WP 10376](https://www.imf.org/External/Pubs/FT/staffp/2004/00-00/rodrik.pdf).

> **Comments:**
> **username_3**: Isn't it ironic that the economist from the OP is suggesting even more interference by the very institutions that create the pro-business over pro-market environment to begin with. The end result will most assuredly be an even more pro-business and less pro-market environment.  

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