[338] in libertarians
Laissez Faire Book News: BEYOND POLITICS
daemon@ATHENA.MIT.EDU (Chris Whitten)
Thu Oct 27 10:11:15 1994
Date: Thu, 27 Oct 1994 10:02:01 -0400 (EDT)
From: Chris Whitten <lfb@panix.com>
Apparently-To: <libertarians@mit.edu>
Why government intervention almost always has bad consequences,
the opposite of what "reformers" intended
BEYOND POLITICS
Markets, Welfare and the Failure of Bureaucracy
by William C. Mitchell and Randy T. Simmons
(reviewed by Jim Powell)
A primary excuse for government intervention is that it will
fix problems allegedly caused by markets--problems such as public
infrastructure, business cycles, unequal incomes and pollution.
In this book the authors, both noted Public Choice economists,
show why the dynamics of government intervention practically
guarantee that problems will get worse.
At the outset, the authors recall the astonishing arrogance
of famous economists who, from 1920 to the present, have blamed
various problems on markets and magically assumed governments
could do better. You will see there has never been a shred of
evidence to back these fairy tale theories, yet again and again
we hear that somewhere over the horizon is a land of ideal
politicians and bureaucrats who always put the public interest
above their personal interest in power.
The most famous fairy tale theory is the one concocted by
John Maynard Keynes who attempted to show that wise government
spending could lift an economy up from depression and smooth out
the business cycle. You will see why government spending tends
to continue going up long after business has recovered--
triggering inflation.
The authors show how perverse political dynamics twist
spending schemes to have very different consequences from what
was intended. How, for example, Social Security started as a
program to help poor people and ended up a scheme transferring
vast sums from young to old, regardless of income. You will see
why income redistribution schemes typically help those intent on
doing good do even better.
Government regulations are supposed to protect consumers and
workers from rapacious capitalists, except that capitalists are
often eager to be regulated. This book makes clear how
capitalists "capture" regulatory bureaucrats to suppress
competition and gain higher profits than are possible in an open
market.
You'll surely gain insights about the problem-plagued
political process... how it restricts choices for people... how
commonly-used election rules distort election results... why
elections have such little impact on government policies... why
it isn't in the interest of politicians to save money... why
flattery, deception, paranoia and hatred are so common among
politicians... how politicians calculate their cynical
vote-buying... why it's almost impossible to discontinue bad
government programs.
Government turns out to be a monster that's exceedingly
difficult to control, in part because it's so crooked. For
example, the authors expose the overwhelming dishonesty of
taxation. They show how politicians denounce taxes as they raise
taxes... how politicians raise taxes in ways calculated to avoid
attracting attention... how politicians stick taxes on interest
groups with the fewest votes... how politicians set up taxes so
businesses will get blamed... how tax "reform" provokes a new
feeding frenzy for tax breaks.
Many bureaucrats might be competent, but government
bureaucracies are hopeless, and this book provides critical
details... chronic backroom dealing, cushy perks, excessive
staffing, red tape, tedious legalities and endless delays... the
"Washington Monument Strategy"... perverse incentives which drive
bureaucrats to reduce the quality of their "services"... why
government enterprises are notoriously inefficient even though
they don't have to get permits or pay taxes like productive
private citizens.
Dreamers among us claim that participation in the political
process is ennobling and can lift people above the grubby greed
of markets. The authors explain that people tend to participate
in the political process because they seek advantages. They make
clear how the political process degrades and corrupts people.
The bigger the role of government in our society, the more
corruption, the book shows. They report there are some 17,000
interest groups which increasingly hope to improve their position
not by offering better goods and services in competitive markets
but by lobbying politicians and bureaucrats for favors. The
inevitable consequence is mediocrity, waste and depressing
decline.
Finally, the authors show why competitive markets provide
the best--or, if you prefer, the least bad--solution to social
problems. They explain why markets are far more responsive to
human needs... how markets gather information more efficiently
than governments... how markets do a far better job disciplining
participants who don't perform... why it's a lot easier to
discontinue unsuccessful private enterprises, liberating
resources for other needs.
This book does a fine job explaining the breakthrough
insights of Public Choice economists who revealed so much about
how the world works.
"We have needed an answer to the question often asked: 'Can
you refer me to a single book that will explain in simple
language what Public Choice is all about?' *Beyond Politics*
meets this need superbly." --James M. Buchanan, Nobel Laureate
"Mitchell and Simmons show how the forces of self-interest
are given a new destructive range in political and administrative
settings that allow interest groups, politicians and bureaucrats
to enhance their own position at the expense of the public at
large." --Richard A. Epstein, author of *Takings*
Book No. PY6188 (hardcover) 234p. publisher's price $49.50
LAISSEZ FAIRE PRICE ONLY $21.95
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Thank you,
Chris
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