One of those tropes that leftists automatically agree with is that anyone who wants to downsize the interventionist state does so because of his greed. The doltish pseudo-economist Jeff Madrick is one of them. In this letter to the editor, Don Boudreaux takes him (and reviewer Sebastian Mallaby) to task for failing to see that big government is far more useful to those who are looking for easy wealth than is the free market.
Editor, The New York Times
620 Eighth Avenue
New York, NY 10018
Dear Editor:
Reviewing Jeff Madrick's "Age of Greed," Sebastian Mallaby reports that "In
Madrick’s telling, a cabal of conservatives [from the 1970s forward], driven
first by greed and second by 'extreme free-market ideology,' gradually seized
power" ("Why We Deregulated the Banks," July 31).
Although Mr. Mallaby ably exposes problems with Madrick's thesis, he misses its
fundamental flaw - namely, the fact that adherence to free-market ideology
undermines, rather than serves, the anti-social goals of greedy political
insiders. Politically powerful businesspeople greedily seek protection FROM the
free market. They lobby for regulations and taxes (such as tariffs) that impose
disproportionately heavy burdens upon their competitors and, hence, upon
consumers. In doing so, such greedy businesspeople follow a course unmistakably
opposite the course they'd follow were they really free-market ideologues.
By failing to see that political power unleashes greed to be used to undermine
rather than to protect free markets, Jeff Madrick is a useful, if unwitting,
idiot for the 'greedy' interests that he fancies himself standing in opposition
to.
Sincerely,
Donald J. Boudreaux
Professor of Economics
George Mason University
