Review of Austrian Economics - The Ludwig von Mises Institute
Review of Austrian Economics - The Ludwig von Mises Institute
Review of Austrian Economics - The Ludwig von Mises Institute
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Higgs: Analysis <strong>of</strong> the Growth <strong>of</strong> Government 21<br />
Thompson [1985], using Box-Tiao tests.) If U.S. voters actually had<br />
preferred that the nation not go to war, it was too late to rectify the<br />
legislators' mistake in the election <strong>of</strong> 1942—the fat was already in the<br />
fire.<br />
Further, political actions are usually followed by carefully crafted<br />
rationalizations, excuses, and propaganda emanating from the politicians<br />
and their friends who initiated or supported the actions. (How<br />
<strong>of</strong>ten do politicians admit policy mistakes?) In this way political<br />
preferences, public opinion, even the dominant ideology may be<br />
altered, becoming more congruent with what has been done and<br />
thereby reversing the direction <strong>of</strong> causality usually assumed in political<br />
models. (On ideology and policy as interactive, see Higgs 1985;<br />
1987a, pp. 67-74; 1989c, pp. 96-98.)<br />
Proposition 12<br />
A corollary <strong>of</strong> Proposition 11: <strong>The</strong> judicial branch <strong>of</strong> government<br />
can be ignored.<br />
If analytical political economists have greatly overstated the role <strong>of</strong><br />
legislators (too <strong>of</strong>ten viewed as perfect agents <strong>of</strong> voters) in the growth<br />
<strong>of</strong> government, they have to an even greater degree understated the<br />
role <strong>of</strong> judges, at least in U.S. history, where legislation must withstand<br />
judicial review <strong>of</strong> its constitutionality to survive and have<br />
ongoing effect. <strong>The</strong> public choice and related analytical literatures<br />
contain almost nothing empirically concrete about the judiciary's<br />
role in the growth <strong>of</strong> American government, although the literature<br />
<strong>of</strong> law and economics <strong>of</strong>fers some useful insights (several chapters<br />
in the volume edited by Gwartney and Wagner [1988], as well as<br />
Hughes [1977], are pertinent) and the literature on constitutional<br />
political economy <strong>of</strong>fers suggestive insights, albeit at a very abstract,<br />
quasi-philosophical level (e.g., Friedrich Hayek's Law, Legislation<br />
and Liberty or various works by James Buchanan and his<br />
collaborators). <strong>The</strong> index <strong>of</strong> the recent, admirably comprehensive<br />
survey <strong>of</strong> public choice by Dennis Mueller (1989) has no entry for<br />
judges or judiciary. Mueller mentions but does not dwell on an<br />
<strong>of</strong>t-cited paper by William Landes and Richard Posner (1975), enticingly<br />
titled "<strong>The</strong> Independent Judiciary in an Interest-Group Perspective."<br />
Unfortunately, the thesis <strong>of</strong> this paper—legislators tolerate<br />
an independent judiciary only to augment the longevity and hence<br />
enhance the value <strong>of</strong> the legislative products they sell—is hard to take<br />
seriously, at least for anyone who has spent much time studying the<br />
constitutional history <strong>of</strong> the United States. (Cogent critics <strong>of</strong> the<br />
Landes-Posner paper include Buchanan [1975], Samuels [1975], and<br />
North [1981, pp. 56-57].)