26.10.2014 Views

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

SHOW MORE
SHOW LESS

Create successful ePaper yourself

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

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].)

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

Saved successfully!

Ooh no, something went wrong!