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RE: The Wealth of a Nation: Why Capitalism Works

in #liberty8 years ago

To oversimplfy, there are two forces that retard human progress, do-gooding and rent-seeking. The term "do-gooding" has little to do with the actual performance of acts that create good results, but instead refers to processes with have the appearance of doing good, and building personal social capital on that appearance. Rent-seeking refers to processes that provide accumulation of profit from other people's capitol and work.

Both rent-seeking and do-gooding are self-interest motive process that interfere with full human production.

Redistribution policy appeals to both of these motives. Politicians, of course benefit from both motives. I think we can all name a politician who has grown wealthy in "public" service. These politicians can use redistribution policy to attract the votes of people with both rent-seeking and/or do-gooding motives.

A historical example outside of redistribution policy would be Prohibition. There is a concept known as "bootleggers and Baptists" which can be summarized in having the bootleggers support prohibition for rent-seeking motive ( higher prices and less competition in selling booze) while the Baptists had the do-gooding motive of fighting "devil rum".

Surprisingly enough (not really), there is not a whole lot of academic research in these areas. If anyone is interested, I can put up some references to what I have collected so far.

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