I heard Jake Adelstein (http://bit.ly/cgTxVY) interviewed today on a
BBC radio show. He is an investigative reporter, involved mainly
looking into organized crime in Japan. He says that, in Japan,
organized crime is supported, or at least not discouraged. The idea is
that you WANT to have monopolies in crime.

WHAT!? Well, economically, the idea is that, with monopolies, you get
companies that don't reach and don't particularly try to reach the
production frontier. You get fewer entrepreneurs, fewer SMEs, and less
innovation.

I do recall Baumol (http://bit.ly/beE8yC) wrote that entrepreneurs
will innovate. In good economic times, they'll work on things that are
good for society; but, in bad economic times, they'll work on things
that are bad for society. You just can't stop them.

Well, if you support organized crime, the idea is that the organized
crime bosses will drive the entrepreneurs away from doing things that
are bad for society.

At least, in theory.

I wonder what are the unintended consequences of this?