American Amakudari?

by wfgodbold

We call them golden parachutes; the Japanese call it amakudari, “descending from heaven.”

When government officials leave their “service” for high-paying private sector jobs that bank on their experience and connections working the system, this fosters a system rife with corruption.

As we saw in the recent (mini-?) collapse, banks and other companies with close ties to the government fared better than those without, even when those companies with close ties to the government made more reckless decisions; studies in Japan have shown that amakudari actually encourages risk-taking, because the connections the companies have to the government will insulate them from any poor repercussions.

I do think Glenn Reynolds’ idea of a surtax on leaving a government position to work in the private sector would help, but I doubt it would make an appreciable impact.

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