No, people don’t vote in their own self-interests. But in this case economists would constitute a special interest group supporting a policy that increases their own income and status. Or do you think that whenever a special interest group requests subsidies and attempts to restrict its competition, self-interest isn’ the primary motivator? Now, of course they won’t be thinking any sinister or malevolent thoughts; I’m sure as well that economists genuinely think that central banking is the best alternative. But why would they think that? Why isn’t Greg Mankiw a strident free banker? Self-interest must be a primary motivator here—not the only motivator, but I’ll eat my hat if it isn’t playing a significant role.
The average economists supports various interventions in the economy for valid economic reasons he would have no trouble explaining. I know, as I’m sure do most economists, valid economic arguments against free markets whenever there are problems with externalities, information asymmetries, natural monopolies, etc, which might well justify things like the EPA and a single-payer universal health care system, public utilities, etc. But Professor Mankiw of Harvard doesn’t seem to think that there’s any similar argument for central banking.
Arguments against central banking go back to people like Adam Smith and Walter Bagehot, who preceded the Austrians.
No, people don’t vote in their own self-interests. But in this case economists would constitute a special interest group supporting a policy that increases their own income and status. Or do you think that whenever a special interest group requests subsidies and attempts to restrict its competition, self-interest isn’ the primary motivator? Now, of course they won’t be thinking any sinister or malevolent thoughts; I’m sure as well that economists genuinely think that central banking is the best alternative. But why would they think that? Why isn’t Greg Mankiw a strident free banker? Self-interest must be a primary motivator here—not the only motivator, but I’ll eat my hat if it isn’t playing a significant role.
The average economists supports various interventions in the economy for valid economic reasons he would have no trouble explaining. I know, as I’m sure do most economists, valid economic arguments against free markets whenever there are problems with externalities, information asymmetries, natural monopolies, etc, which might well justify things like the EPA and a single-payer universal health care system, public utilities, etc. But Professor Mankiw of Harvard doesn’t seem to think that there’s any similar argument for central banking.
Arguments against central banking go back to people like Adam Smith and Walter Bagehot, who preceded the Austrians.