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:
“Finance is a gun. Politics is knowing when to pull the trigger.”
—Mario Puzo, U.S. author, screenwriter, and Francis Ford Coppola, U.S. director, screenwriter. Michael Corleone (Al Pacino)
“The average Kentuckian may appear a bit confused in his knowledge of history, but he is firmly certain about current politics. Kentucky cannot claim first place in political importance, but it tops the list in its keen enjoyment of politics for its own sake. It takes the average Kentuckian only a matter of moments to dispose of the weather and personal helath, but he never tires of a political discussion.”
—For the State of Kentucky, U.S. public relief program (1935-1943)
“The real grounds of difference upon important political questions no longer correspond with party lines.... Politics is no longer the topic of this country. Its important questions are settled... Great minds hereafter are to be employed on other matters.... Government no longer has its ancient importance.... The people’s progress, progress of every sort, no longer depends on government. But enough of politics. Henceforth I am out more than ever.”
—Rutherford Birchard Hayes (1822–1893)