The Wrong Incentives
Posted by aogMonday, 18 July 2011 at 11:11 TrackBack Ping URL

Tim Noah observed

On Wall Street, financial crisis destroys jobs. Here in Washington, it creates them. The rest is just details.

Essentially, for the pro-regulation folks, trashing the economy means more jobs and power but that doesn’t count as self interest, or anything to be concerned about. Boosting the economy means lots of money for corporatists, but that sort of self interest is bad and wrong. Personally, I think self interest that creates wealth is better than self interest that destroys and steals it. But that’s just my inner shirtist talking.

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Bret Monday, 18 July 2011 at 12:24

There’s also the symbiotic relationship between the statists (i.e. “pro-regulation” folk) and the corporatists where the latter fund and support the former and the former create laws and regulation that benefit the latter. Reducing the number of statists automatically will induce better behavior in the corporatists and will benefit the free market.

Annoying Old Guy Monday, 18 July 2011 at 14:17

Bret;

Kind of like this?

Bret Monday, 18 July 2011 at 15:01

Sure, that too, but I was more thinking of the relationship between GM, the unions, and the government. No limit to corruption possibilities though.

Annoying Old Guy Monday, 18 July 2011 at 18:16

What always strikes me is that most MAList don’t argue that public corruption and self interested dealing is less, but blithely ignore it as if it isn’t even possible. For instance presuming that regulations, even if well written, will automatically reduce the problem rather than creating a worse one that’s corrupt on top of that. There’s never the question of a trade-off, only bewilderment at why you don’t want to address the problem.

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