Political Capitalism and the Power of Elites: Randall Holcombe

The Answer Is Transaction Costs

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This episode explores the intersection of democracy and capitalism, focusing on the concept of political capitalism and its relation to cronyism. Randall Holcomb discusses transaction costs, charismatic leadership, and critiques the idea that democracy and separation of powers inherently checks coercion, stressing the need for competing elites to foster accountability.
• Transaction costs hinder citizen engagement in political processes
• Political capitalism defined as capitalism influenced by political motives
• Dynamic of cronyism within democratic systems
• Buchanan's notion of "politics as exchange" explored
• Political elites dominant in shaping policy and public preferences
• Charismatic leadership affects political beliefs and decisions
• Importance of competing elites for maintaining a balanced political landscape
• Reasons for optimism surrounding innovation in capitalism despite political challenges
• Upcoming book discusses further aspects of political exchange
Links!
Randy Holcombe's web site at FSU

• Political Capitalism book
• Following Their Leaders book

Michael Giberson blog post at Knowledge Problem, on Price Gouging.
Book'o'da Month: Peter Boettke, Rosolino A. Candela and Tegan Lindstrom Truitt, The Socialist Calculation Debate: Theory, History, and Contemporary Relevance https://www.cambridge.org/core/elements/socialist-calculation-debate/5E63749F9D34D065193DCF77FC9FD8A9

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You can follow Mike Munger on Twitter at @mungowitz

章

1. Political Capitalism and Public Choice (00:00:00)

2. Limits of Liberty (00:13:32)

3. Transaction Costs and Political Marketplace (00:30:17)

4. The Dynamics of Political Influence (00:35:14)

5. The Influence of Political Anchors (00:41:09)

6. The Importance of Competing Elites (00:54:11)