Crime and Capitalism

Bruce Judson on crime and capitalism. (via Mark Thoma).  Judson argues that crime, if not punished appropriately, creates distortions within the "free" market, which can really disrupt growth.  It gives cheating agents an unfair advantage, allowing the agent to profit when it really shouldn't be profiting.  A good extension on being paid (somewhat) equal to your marginal productivity.  If you're cheating, you're not really being productive, and you shouldn't be benefiting from that faux productivity.