The Answer Is Transaction Costs Political Capitalism and the Power of Elites: Randall Holcombe
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Dec 24, 2024 Randall Holcombe, a Professor at Florida State University and expert in political capitalism, delves into the intricate dance between democracy and capitalism. He critiques the notion that democracy inherently checks power, emphasizing the significance of competing elites for accountability. Holcombe explores how transaction costs hinder citizen engagement, while charismatic leadership shapes political beliefs. He also discusses the dynamics of cronyism in democracy and offers reasons for optimism in innovation within political challenges, hinting at his upcoming book, 'Politics as Exchange.'
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Market Fascination
- Randall Holcombe's interest in economics stemmed from understanding market mechanics.
- The spontaneous order of markets, like grocery stores always having items, fascinated him.
Path to Public Choice
- Holcombe's undergraduate public choice course at the University of Florida introduced him to Buchanan and Tullock's work.
- This led him to Virginia Tech, where he studied with them at the Public Choice Center.
Government and Coercion
- Governments are products of coercion, not agreement, regardless of citizen satisfaction.
- Holcombe argues this point, citing historical examples of governments formed through force.
