This is not an election fought over competing policies but a struggle for legitimacy. A very large portion of the electorate (how large a portion we will discover next month) believes that its government is no longer legitimate, and that it has become the instrument of an entrenched rent-seeking oligarchy.
By and large, I agree with this reading. "America's economy is corrupt, cartelized and anti-competitive," I wrote in August. It is typical of rent-seeking that Lockheed Martin's stock price has tripled during the past three years, and payment to its top management team has risen from $12 million a year to over $60 million a year, while Lockheed Martin's F-35 languishes in cost overruns and deployment delays. Produce a lemon and get rich: that's Washington. It is not a trivial matter, or unrepresentative of our national condition, that the FBI director who declined to prosecute Mrs. Clinton for mishandling of classified material just returned to government from a stint at Lockheed Martin, where he was paid $6 million for a single year's service. I don't know whether FBI Director Comey is corrupt. But it looks and smells terrible.
That's why it was so important for Trump to talk about jail time for his opponent. If things had not gotten to the point where former top officials well might belong in jail, Trump wouldn't be there in the first place. The Republican voters chose a reckless, independently wealthy, vulgar, rough-edged outsider precisely because they believe that the system is corrupt. They are right to so believe; if the voters knew a tenth of what I know about it, they would march on Washington with pitchforks.
What is rent seeking? Here:
"Rent seeking” is one of the most important insights in the last fifty years of economics and, unfortunately, one of the most inappropriately labeled. Gordon Tullock originated the idea in 1967, and Anne Krueger introduced the label in 1974. The idea is simple but powerful. People are said to seek rents when they try to obtain benefits for themselves through the political arena. They typically do so by getting a subsidy for a good they produce or for being in a particular class of people, by getting a tariff on a good they produce, or by getting a special regulation that hampers their competitors. Elderly people, for example, often seek higher Social Security payments; steel producers often seek restrictions on imports of steel; and licensed electricians and doctors often lobby to keep regulations in place that restrict competition from unlicensed electricians or doctors.
Recent Comments