Politics
Becker is also famous for his economic analysis of democracy. He asked what determines the extent to which an interest group can exploit another. The basis of his analysis was the concept of deadweight loss.
Becker's insight was to recognize that deadweight losses put an exponential break on predation. He took the well-known insight that deadweight losses are proportional to the square of the tax, and used it to argue that a linear increase in takings by a predatory interest group will provoke a non-linear increase in the deadweight losses its victim suffers. These rapidly increasing losses will prod victims to invest equivalent sums in resisting attempts on their wealth. The advance of predators, fueled by linear incentives slows before the stiffening resistance of prey outraged by non-linear damages.
He is also noted for his advocacy of immigration tariffs, and for his staunch defense of the consequences of neoliberalism in Latin America.
Read more about this topic: Gary Becker
Famous quotes containing the word politics:
“His talk was like a spring, which runs
With rapid change from rocks to roses:
It slipped from politics to puns,
It passed from Mahomet to Moses;
Beginning with the laws which keep
The planets in their radiant courses,
And ending with some precept deep
For dressing eels, or shoeing horses.”
—Winthrop Mackworth Praed (1802–1839)
“The Germans—once they were called the nation of thinkers: do they still think at all? Nowadays the Germans are bored with intellect, the Germans distrust intellect, politics devours all seriousness for really intellectual things—Deutschland, Deutschland Über alles was, I fear, the end of German philosophy.”
—Friedrich Nietzsche (1844–1900)
“All is politics in this capital.”
—Thomas Jefferson (1743–1826)