James d. Gwartney

Recovery, ed. B. Eichengreen (Cambridge: Cambridge University Press, 1995): 127–150. See text in Irwin for references in
charts.49. Ibid., p.7.50. Ibid., p.2.51. See, for example, Havrylyshyn, and Tupy (2016) “25 Years of Reforms in Ex
-Communist Countries: Fast and Extensive
Reforms Led to Higher Growth and More Political Freedom,” CATO Institute Policy Analysis No. 795.52. These figures are in 2011 “International Dollars” to make comparisons more meaningful. The international dollar adjusts
for differences in prices in different countries. 
53. James Buchanan was awarded the 1986 Nobel Prize in Economics for his role in the development of public choice
economics. For a clear and comprehensive presentation of public choice analysis, see Randy Simmons, Beyond Politics: The
Roots of Government Failure (Oakland, California: The Independent Institute, 2011). 
54. A. C. Pigou, who many consider to be the father of welfare economics, makes this same point. In his 1932 classic The
Economics of Welfare (Part II, Chapter 20, Section 4), Pigou stated, “It is not sufficient to contrast the imperfect adjustments of
unfettered private enterprise with the best adjustment that economists in their studies can imagine. For we cannot expect that
any public authority will attain, or will even whole-heartedly seek, that ideal. Such authorities are liable alike to ignorance, to
sectional pressure and to personal corruption by private interest. A loud-voiced part of their constituents, if organized for
votes, may easily outweigh the whole.” 

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55. Thomas Sowell, Is Reality Optimal and Other Essays (Stanford: Hoover Institution Press, 1993). 
56. See Jared Meyer and Preston Cooper, “Sugar Subsidies Are a Bitter Deal for American Consumers,” Economic Policies
for the 21st Century at the Manhattan Institute, Manhattan Institute (June 23, 2014). 
economics21.org/commentary/sugar-
subsidies-are-bitter-deal-american-consumers
. In recent years candy manufacturers and other major users of sugar have been
moving to Canada, Mexico, and other countries where sugar can be purchased at the world market price. Illustrating our earlier
discussion of trade, the import restrictions that “saved” jobs in the sugar-growing industry caused job losses in other industries,
particularly those that use sugar intensely.57. Jeffrey Frankel, “The arguments against food and energy subsidies,” World Economic Forum, August 18, 2014.
https://www.weforum.org/agenda/2014/08/food-energy-subsidies-egypt-india-indonesia
.58. See Holman W. Jenkins Jr., “How Uber Won the Big Apple,” Wall Street Journal, July 24, 2015.
http://www.wsj.com/articles/how-uber-won-the-big-apple-1437778176
. 
59. See John Voelcker, “Where Can Tesla Legally Sell Cars Directly To You? State-By-State Map: LATEST UPDATE.” Green
Car Reports, April 22, 2015, n.p. 
www.greencarreports.com/news/1095337_where-can-tesla-legally-sell-cars-directly-to-you-
state-by-state-map
; Phil Kerpen, “Tesla and Its Subsidies.” National Review Online, January 26, 2015, n.p.
http://www.nationalreview.com/article/397162/tesla-and-its-subsidies-phil-kerpen
. 
60. James Buchanan, The Deficit and American Democracy (Memphis: P. K. Steidman Foundation, 1984). 
61. Ashley Kirk, “European debt crisis: It’s not just Greece that’s drowning in debt,” Daily Telegraph, February 8, 2017.
https://www.telegraph.co.uk/news/0/european-debt-crisis-not-just-greece-drowning-debt
.62. We are indebted to E. C. Pasour Jr., longtime professor of economics at North Carolina State University, for this example.
63. Eurostat, Statistics Explained, “Government expenditure on social protection.” 
http://ec.europa.eu/eurostat/statistics-
explained/index.php/Government_expenditure_on_social_protection
. 
↩ 
64. Eurostat, Statistics Explained, “Population structure and ageing.” 
http://ec.europa.eu/eurostat/statistics-
explained/index.php/Population_structure_and_ageing
. 
↩ 
65. James R. Schlesinger, “Systems Analysis and the Political Process,” Journal of Law & Economics (October 1968): 281.
66. World Bank, “Subsidies and other transfers (% of expense),” International Monetary Fund, Government Finance Statistics