24.04.2014 Views

url?sa=t&source=web&cd=1&ved=0CCYQFjAA&url=http://mercatus.org/sites/default/files/Holcombe_Cronyism_web

url?sa=t&source=web&cd=1&ved=0CCYQFjAA&url=http://mercatus.org/sites/default/files/Holcombe_Cronyism_web

url?sa=t&source=web&cd=1&ved=0CCYQFjAA&url=http://mercatus.org/sites/default/files/Holcombe_Cronyism_web

SHOW MORE
SHOW LESS

Create successful ePaper yourself

Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.

is a group of cronies in a dictatorship or a majority in<br />

a democracy. The concept of gridlocked government is<br />

common in an analysis of democracy precisely because<br />

there is no dictator, but rather a political process that<br />

requires the support of many to pass any policy. The<br />

same is true of every government that has been called<br />

a dictatorship: no government can operate without a<br />

group of cronies to support the dictator’s position and<br />

power. Government decisions are the result of a collective<br />

decision-making process that always requires the<br />

support of many people; they are not made by a singular<br />

entity, even in a dictatorship.<br />

The government is not an omniscient, benevolent<br />

dictator. Understanding the way the government works<br />

requires understanding the information limitations government<br />

decision-makers face, the incentive structure<br />

that may push them to act against the public interest,<br />

and the collective process by which a large group makes<br />

government decisions instead of a dictator unilaterally<br />

imposing them. Analyzing the claim that various political<br />

and economic systems are all variants of liberalism and<br />

cronyism requires setting aside the myth of the omniscient,<br />

benevolent dictator. The next several chapters<br />

examine various political and economic systems to see<br />

how they actually work in practice rather than how they<br />

might ideally work in theory.<br />

LAYING A FOUNDATION 13

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!