EconTalk Bruce Yandle on Bootleggers and Baptists
10 snips
Jan 15, 2007 Bruce Yandle, economist and Clemson dean emeritus known for the 'Bootleggers and Baptists' idea, explains why strange political alliances form. He describes coalitions of moral crusaders and profit-seekers. He explores historical regulatory twists, technology mandates that favor incumbents, the Clean Air Act quirks, and the tobacco settlement's market effects.
AI Snips
Chapters
Transcript
Episode notes
Bootleggers And Baptists Explains Strange Coalitions
- Political coalitions often combine moral crusaders with hidden economic beneficiaries.
- Bruce Yandle's "Bootleggers and Baptists": Baptists provide moral cover while bootleggers gain concentrated economic benefit from the same regulation.
Technology Mandates Can Produce Perverse U Turns
- Technology-mandated rules can create perverse incentives that worsen outcomes.
- Example: scrubber mandates made plants indifferent and encouraged burning cheaper dirty eastern coal, raising costs and sometimes increasing pollution.
Why Politicians Favor Technology Based Standards
- Politicians prefer technology-based standards because benefits are concentrated and identifiable.
- Mandating a specific device (scrubber, catalytic converter) lets politicians and beneficiaries claim credit while spreading costs thinly across many consumers.