IHS Fellow
In Case You Missed It
Andy Craig, an IHS Fellow, argues that reviving the liberal tradition requires waging war on these modern forms of rent-seeking. Highlighting the distortion of the free market by regulatory capture, monopolies, and anti-competitive laws, Craig challenges both Republicans and Democrats to dismantle these privileges in favor of genuine market freedom.
“Classical liberals once led the charge against rent-seeking: the practice of using political influence to secure economic benefits that would not otherwise be available in a competitive market. In the fight for free trade, protectionist tariffs were accurately portrayed as enriching the few at the expense of the many. State-granted monopolies, especially before the advent of general incorporation laws, were cast as unjust privileges incompatible with the philosophy of equal rights for all. The term ‘special interests’ was coined in the context of these fights, disparaging them in contrast to the general interest, or common good, of all citizens.
Today, however, rent-seeking has receded from the forefront of political debate, leaving many of its most egregious forms to persist unchecked. Worse, much of the rent-seeking that exists today is hidden behind the rhetoric of free markets and economic liberty, even though it thrives on government intervention. This is especially true in the Republican Party, though not exclusively. In state and local politics, certain rent-seeking groups have become deeply entrenched, benefiting from regulatory capture and state-granted privileges. In turn, they become key backbones of the party coalition, forming much of the leadership and donor class. The over-representation of such professions among state legislators is one indication of the trend.”
Read more about how rent-seeking distorts the economy and stifles innovation in Andy Craig’s article for Liberal Currents.
