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An infuriatingly stupid Kinsley essay



Michael Kinsley notes that publicly-traded stocks are sometimes bought out and taken private, and that private equity managers sometimes make profit on these deals. He concludes that the free market does not work.

The non sequitur is appalling. It is apparently beyond Kinsley's comprehension that private equity managers could add value to a corporation through better management.

Kinsley acknowledges that private equity managers, by taking a company private, could be increasing the value of a corporation by avoiding the regulatory burdens that accompany public trading, but then again concludes that this shows that the free market can not work, rather than the obvious conclusion that the regulatory constraints on the free market are inefficient and create opportunities for profit through avoidance.

 

 


Rafael Mangual
Project Manager,
Legal Policy
rmangual@manhattan-institute.org

Katherine Lazarski
Manhattan Institute
klazarski@manhattan-institute.org

 

Published by the Manhattan Institute

The Manhattan Insitute's Center for Legal Policy.