Home
/
RELIGION & LIBERTY ONLINE
/
The real reason the economy is ‘rigged’
The real reason the economy is ‘rigged’
Feb 11, 2026 9:44 AM

Vox recently published an article claiming that Charles Koch is right and Bernie Sanders is wrong about how the economy is rigged. Both agree that there are laws that unfairly favor some financially over others. Sanders often claimed during his campaign that the rich have used their money to lobby for laws that favor their interests over those of everyone else. Meanwhile, Charles Koch has condemned excessive regulation and restrictions on economic freedom that allow the few to bend laws in their financial favor against the many. In looking at the real problem in the economy, Charles Koch’s analysis of the es closer to the truth.

In Koch’s analysis, “the few” does not mean the 1%. In fact, this particular group includes a large portion of the populace from vastly different economic backgrounds. Will Wilkinson, writing for Vox, explains:

The economy is the sum of this plex ecosystem of human exchange, and is far too variegated and decentralized to “rig” all at once. So it gets rigged little by little, one market and one jurisdiction at a time.

The story of how the economy gets rigged is therefore a bunch of homely little stories of people with nice watches screwing over people with less-nice watches. But it’s not class war. It’s not the mega rich against the rest of us. It’s insiders seeking and then protecting special privileges that give them a leg up.

Examples of such rigging include instances where dentists, cosmetologists, cab drivers, and massage therapists have all successfully restricted the market and successfully lobbied for regulations in their favor, often in the name of the mon good” or “public safety.” Such regulations may take the form of occupational licensing, “environmental protection” or “consumer protection” measures, or any other array of laws or bureaucratic rules. The practice of lobbying for such regulations is called “transfer-seeking,” and successful endeavors constitute “regulatory capture.”

These kinds of practices harm the total economy, but may affect the poor the most:

Many of these economic regulations seem trivial in isolation … But when you add up all the things you can’t do for money without meeting costly, unjustifiable requirements, you get a dense web of restriction that acts as a suffocating structural barrier to economic opportunity, mobility, and equality.

The blame for such a tangled “web” of unfair regulations falls, says Wilkinson, on the weakness of economic liberty in the United States. Wilkinson claims:

American law does not consider economic liberties to be ‘fundamental’ …so regulations of economic life aren’t required, as matter of law, to have any practical relationship to the goals they are supposed to achieve.

Wilkinson implores people of all political leanings e together to find and dissolve unnecessary and unfair laws or regulations that facilitate this rigging. The quote above would suggest strengthening economic liberties under law would also improve the situation. Whatever the solution, the idea that the government should not facilitate economic benefit for a small group at the expense of the general population is one that garners bipartisan support. It might even be the issue that can bring the two parties together in an increasingly partisan country.

Read the entire article here. For a more in-depth analysis, check out journalist Jonathan Rauch’s book Government’s End: Why Washington Stopped Working, which examines how transfer-seeking and regulatory webs impair our democracy.

Comments
Welcome to mreligion comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
RELIGION & LIBERTY ONLINE
What are the arguments against international trade?
Note: This is post #35 in a weekly video series on basic microeconomics. Does trade harm workers by reducing the number of jobs in the U.S.? Is it wrong to trade with countries that use child labor? In this video by Marginal Revolution University, Alex Tabarrok discusses some of the mon arguments against international trade. (If you find the pace of the videos too slow, I’d mend watching them at 1.5 to 2 times the speed. You can adjust the...
Wim Decock named the 2017 Novak Award winner
Professor Wim Decock In recognition of Professor Wim Decock’s outstanding research into the fields of theology, religion and economic history, the Acton Institute will be awarding him the 2017 Novak Award. Professor Wim Decock teaches legal history at the Universities of Leuven and Liège (Belgium). He is an associate fellow at Emory University’s Centre for the Study of Law and Religion (USA) and an affiliate researcher at the Max-Planck-Institute for European Legal History (Germany). Decock holds an M.A. in Classics,...
A rift with ‘Europe,’ or just the EU?
After last weekend’s G-7 and NATO summits, leading figures would have the world believe that transatlantic relations are rougher than ever, literally as well as figuratively. The media have highlighted such ephemera as President Trump’s allegedly pushing the prime minister of Montenegro and his white-knuckle handshake with French President Emmanuel Macron. European politicians, however, speak in starker tones about the twin threats of a Trump presidency and an impending Brexit. German Chancellor Angela Merkel announced her despair at a campaign...
Video: Lawrence Reed on real heroes
On May 18th, the spring 2017 Acton Lecture Series wrapped up with an address from Lawrence Reed, president of the Foundation for Economic Education. Reed’s talk was based on his recently released book,Real Heroes: Inspiring True Stories of Courage, Character, and Conviction. We’re pleased to share the video of his lecture below. ...
Bad economic policies create moral problems
In Europe, the answer to one bad economic policy seems to be another bad economic policy. However, if such failures intersect in the right way, the problem goes from being a fiscal to a moral problem. Take the issue of“eurobonds,”a concept wholeheartedly supported by newly elected French President Emmanuel Macron. Think of eurobondsas the redistribution of debt. The mechanism essentiallypools the collective debt of itsremaining 27 members at the EU level. Eurobondswould allow nations like Greece to borrow more money...
The Importance of Incompetence
An illustration of the Peter Principle. Source: Wikimedia Commons. Public Domain. Today at Public Discourse, I argue that in addition to idealism and self-interest, petence needs to be recognized as a more important factor in politics: [U]nless we add petence as a category of analysis, we will tend to view every victory for our own team as a triumph of justice or freedom or equality (idealism), and every failure the result of deep and convoluted corruption (self-interest). This is not...
Charles Murray: ‘We need a cultural Great Awakening’
In response to increasing economic disruption and drastic social shifts in American life, Sen. Mike Lee recently launched the Social Capital Project, a multi-year research project dedicated to investigating “the evolving nature, quality, and importance of our associational life.” As I recently noted, the project’s first report highlights the connections between “associational life” and the nation’s economic success, stopping short ofspecific policy solutions. “In an era where many of our conversations seem to revolve around the individual and large institutions,...
Understanding the President’s Cabinet: Trade Representative
Note: This is the post #19 in a weekly series of explanatory posts on the officials and agencies included in the President’s Cabinet. See the series introductionhere. Cabinet position:U.S. Trade Representative (USTR) Department: Office of the United States Trade Representative, which is part of the Executive Office of the President Current Representative:Robert Lighthizer Department Mission:“The Office of the U.S. Trade Representative (USTR) is responsible for developing and coordinating U.S. international modity, and direct investment policy, and overseeing negotiations with other...
Audio: Samuel Gregg on the universal basic income
Last week, Facebook founder Mark Zuckerberg endorsed the idea of a universal basic e during mencement address at Harvard University. Samuel Gregg, Acton Institute Director of Research, joined host Drew Mariani on Relevant Radio yesterday to discuss the arguments for and against the idea, and whether it would even work as advertised. You can listen to the interview via the audio player below. ...
The DeVos budget: Toward a new paradigm of public education
“If school choice effectively functions as a standing critique of public education as well as being a potential solution to problems evident in the current system,” asks Hunter Baker in this week’s Acton Commentary, “how can public school advocates ever approve of an appointee like Betsy DeVos?” That question leads to others. What is the mission of the Department of Education? And if that mission is defined as advancing public education in the United States in a particular way, then...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved