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Bootleggers and Baptists
Following up on yesterday’s blog post about health department regulation, it seemed fitting to bring up the theory of “Bootleggers and Baptists” proposed by Bruce Yandle of the Mercatus Center.
Yandle argues that: "regulation evolves when it is demanded by both of two distinctly different groups. ‘Baptists’ point to the moral high ground and give vital and vocal endorsement of laudable public benefits promised by a desired regulation. Baptists flourish when their moral message forms a visible foundation for political action. ‘Bootleggers’ are much less visible but no less vital. Bootleggers, who expect to profit from the very regulatory restrictions desired by Baptists, grease the political machinery with some of their expected proceeds. They are simply in it for the money."
Yandle gives some great examples, from Prohibition to environmentalism, of how this dynamic plays out in public policy making, in this video:
Also check out this Econtalk podcast, in which Russ Roberts talks with Yandle about the origins of the theory.
For more about economics, take a look at our library of topics: Economics
