The Fatal Conceit: A Pay “Czar”

The social purpose of competition and private enterprise is to provide quick responses to constantly changing market conditions.

via The Becker-Posner Blog: The Fatal Conceit: A Pay “Czar”-Becker.

Gary Becker attacks the “pay czar” for the lunacy it is. In the process of doing so, he produced the wonderful quote above. Some people might think that “constantly changing market conditions” is a reference to Wall Street, but that would be a misinterpretation. Changing conditions means people changing their preferences for any number of reasons. For all its shortcomings, the free enterprise system does a better job of fulfilling people’s desires than any other approach.

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