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:
“In politics people throw themselves, as on a sickbed, from one side to the other in the belief they will lie more comfortably.”
—Johann Wolfgang Von Goethe (1749–1832)
“Political organizations have slowly substituted themselves for the Churches as the places for believing practices.... Politics has once again become religious.”
—Michel de Certeau (1925–1986)
“A baby changes your dinner party conversation from politics to poops.”
—Maurice Johnstone (20th century)