The key is to somehow find a way of tackling rent-seeking, crony capitalism, and corruption - legal and illegal - and build fairer, more equal society without compromising innovation or entrepreneurship.

In this quote, Angus Deaton addresses the challenge of creating a fairer, more equal society while still fostering an environment that encourages innovation and entrepreneurship. He suggests that the key to achieving this balance is to tackle issues like rent-seeking, crony capitalism, and corruption—both legal and illegal. These problems distort the economy by allowing powerful individuals or companies to secure profits without contributing to productive economic activities, thereby perpetuating inequality and undermining fair competition.

Deaton's mention of rent-seeking refers to situations where businesses or individuals try to gain wealth without creating new value, often by exploiting the system or manipulating government policies. Crony capitalism involves a system where businesses thrive because of close relationships with politicians or government officials, rather than through fair competition. Both of these practices can stifle economic growth, limit opportunity, and contribute to inequality in society.

By also addressing corruption—both legal and illegal—Deaton highlights how widespread corrupt practices can erode trust in institutions and hinder progress. Legal corruption often involves practices that, while technically allowed by law, still create unfair advantages for certain individuals or groups, while illegal corruption involves outright unlawful actions like bribery and fraud. Tackling these issues is crucial for building a society where opportunities are equally accessible to all and the benefits of entrepreneurship are distributed more fairly.

Ultimately, Deaton’s quote underscores the delicate task of addressing these systemic issues without discouraging the innovation and entrepreneurship that drive economic progress. His statement calls for reforms that reduce corruption and inequality, while preserving the freedoms and incentives that allow individuals and businesses to thrive.