Dynamism as a Bump on the Road to Crony Capitalism?

All of these things lead to a more flexible labor market and hence to lower unemployment rates in Canada, the United Kingdom, and the United States relative to those in Continental Europe. [...]if jobs are less compelling and engaging as a result, there may result collateral damage in reduced labor force participation and diminished employee morale, leading to increased unemployment. in a very literal sense corporatism prevents the economy from being as developed as it would be under an operating system hospitable to innovation. [...]the subtitle of Mass Flourishing refers to "grass roots innovation" (Phelps 2013). Corporatism, because of its resistance to change, leads to less innovation and, hence, to fewer challenges in the workplace as well as to decreased intellectual stimulation and human flourishing. Because the decline in dynamism appears at the individual level, turning things around needs to happen at the grassroots level, according to Phelps (2013). Phelps (2006, 2013) refers to the insulation from competition garnered by rent seekers as "social protection," which can include things such as subsidies to support domestic artists to reduce competition from foreign culture and regulations making it difficult to fire employees.