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:
“Our democracy, our culture, our whole way of life is a spectacular triumph of the blah. Why not have a political convention without politics to nominate a leader who’s out in front of nobody?... Maybe our national mindlessness is the very thing that keeps us from turning into one of those smelly European countries full of pseudo-reds and crypto-fascists and greens who dress like forest elves.”
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—Anton Pavlovich Chekhov (1860–1904)