Monday, July 4, 2016
The glory that is human nature..............
Because we specialize in production, our well-being is much more affected by changes in the market for what we produce than it is by changes in the market for any one of the many goods and services that we consume. That makes us strongly disposed to favor restrictions that restrict competition in the market where we produce. Although we have a preference for free trade in the markets where we consume, that preference is less focused and less intense. As a consequence, political lobbyists representing producer interests are more heavily engaged that are lobbyists for consumer interests. In turn, that difference can lead to a regulatory process that favors incumbent producers to the detriment of consumers and new would-be producers.
-Arnold Kling, Specialization and Trade: A Re-Introduction to Economics