Underestimating long-term consequences of cryptoanarchy

[Tim May]

On Friday, May 16, 2003, at 10:10  AM, Steve Schear wrote:
> The Whig Party's platform was called, by Clay, the American System.  
> Today we call it mercantilism.  The Whigs pushed their internal 
> improvements agenda (building unneeded and/or grossly overpriced 
> roads, bridges or canals supplied by political contributors) across 
> all the states in the early 1800s.  Everywhere it was a disaster 
> bankrupting several.  So much so that by 1850 all state constitutions 
> banned internal improvement activities.  This was the downfall of the 
> Whigs, but many of its leaders resurfaced in the Republican party 
> whose first presidential candidate was Lincoln.
>

The more recent name for this is "pork barrel politics." (Actually an 
old name, but still in use.) Projects get built where constituents and 
contributors will benefit the most.

Declan mentioned the "public choice" analysis as it related to 
politicians supporting the creation of "homeless gardens." (This is 
what the community garden in Santa Cruz is called.)

These notions are all closely related:

-- public choice analysis (who benefits?)

-- market distortions (markets are ignored)

-- rent-seeking (control of resources means continuing rent); 
shakedowns, governments banning competition for its monopolies

-- central planning (inefficient allocation)

-- laws no longer connected to morality, but to rent-seeking (gov't. 
running gambling)

-- a general inattention to market, as politicians are not spending 
their own money (hence bad investments in urban renewal, factory 
subsidies, highways, railroads, etc.)--their own money is not at risk.

All of these points are why libertarian, market-oriented ideas are 
important even if the moral issues are unpersuasive (to some).

--Tim May


--Tim May
"Aren't cats Libertarian? They just want to be left alone.
I think our dog is a Democrat, as he is always looking for a handout"  
--Unknown Usenet Poster