Bootleggers & Baptists: How Economic Forces and Moral Persuasion Interact to Shape Regulatory Politics
Adam Smith and Bruce Yandle
Last annotated on Thursday September 7, 2017
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1. Bootleggers and Baptists: A Winning Coalition
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“Baptists question Amazon porn sales, oppose tax break.”
Note:I MORALISTI CONTRO L INSEDIAMENTO FISCALMENTE AGEVOLATO DI AMAZON IN SUD CAROLINA
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Baptist leaders rallied in opposition to the tax break—and to Amazon’s presence—spurred by moral concerns about unrated videos sold by the website,
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These seemingly disparate forces—Baptist leaders; major retailers Walmart, Best Buy, and Target; and small Main Street retailers—worked in tandem to vehemently oppose the tax exemption.
Note:IMPROBABILE ALLEANZA
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The Bootlegger/Baptist label is now applied to a wide variety of regulatory episodes where the term “Bootlegger” no longer implies illegal action but rather applies to political action in pursuit of narrow economic gains.
Note:L ORIGINE DELLA DIADE: IL PROIBIZIONISMO SUPPORTATI SIA DAI MOTALISTI CHE DAI CONTRABBANDIERI
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The Bootlegger/Baptist Dynamic
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The theory describes how special interest groups acquire gains through the political process,
Note:L ALLEANZA IDEOLOGIA INTERESSE
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Bootlegger/Baptist theory tells a story of how public interest justification greases the rails for purely private pursuits.
Note:RETORICA DELL INTERESSE PUBBLICO
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clothed in public interest garb
Note:TRAVESTIMENTO
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situations where businesspersons were joined by clergy and others who wrapped the political enterprise in an attractive moral cloak,
Note:SOTTO LA TONACA
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London weavers exploited a stricture contained in the Magna Carta to gain an advantage over foreign competition
Note:IL CASO DEI TESSITORI
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“Great Charter” established uniform measures of ale, grain, cloth, and other goods to facilitate trade—a classic case of consumer protection
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London weavers paid a bribe to local enforcement agents to avoid having the standard enforced on themselves but demanded that it be scrupulously applied to traveling merchants
Note:APPLICAZIONE DOSOMOGENEA
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Bootlegger firms may covertly advance Baptist arguments, as when film studios advocate for more stringent copyright protection by invoking either the moral claims of artists to remuneration or the promise of increased creativity and innovation
Note:INDUSTRIA CINEMATOGRAFICA
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Bootleggers fund Baptists to bolster support for the political outcome both desire.
Note:FINANZIAMENTI
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The Rising Tide of Social Regulation
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FEDERAL REGISTER PAGES PER REAL GDP DOLLAR
Note:MISURA DELLA MASSA DI REGOLE... ESPLOSIONE
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Old-style regulation focused on single industries, yielding a natural constituency of regulated firms that sought to influence outcomes. Social regulation affected all industries.
Note:REGOLE ECONOMICHE OLD STYLE E REGOLE SOCIALI
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Throttling GDP Growth
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some call “regulatory capitalism,” what others might call crony capitalism,
Note:CAPITALISMO SELVAGGIO CAPITALISMO MAFIOSO
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scholarship on the matter leaves no doubt that regulation has taken a toll on the economy.
Note:PEDAGGIO PER LA CRESCITA
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Regulating the Regulators
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Very few scholars in the early 1970s and 1980s saw federal regulation as a way to serve private interests. Adam Smith’s warning was not heeded.
Note:LA TOPICA DEGLI STUDIOSI
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Four Modes of Bootlegger/Baptist Interaction
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Covert Strategy
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Restrictions on trade, for instance, tend to protect domestic producers from foreign competition at the expense of consumers—but saying so overtly is a poor way to win political support for such measures.
Note:CERTE CAUSE NN POSSONO ESSERE RESE PUBBLICHE
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The items, he said, “[were] made of very inferior materials and are manufactured in a manner calculated to deceive rather than serve the consumer” (Yafa 2005, 107).
Note:LOTTA CONTRO IL COTONE NDIANO... INTERESSE PUBBLICO E PROFITTO
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Baptist arguments were to be found on both sides. Supporters of the law condemned overseas file lockers for enriching themselves at the expense of American artists,
Note:LEGGE ANTINAPSTER... ARGOMENTO MORALISTA CHE COPRE INTERESSI
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Noncooperative Strategy
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often the shifting sands of economic interests bring Bootleggers in as latecomers to long-standing moral crusades, thereby providing Baptists with the decisive boost they need to achieve their aims.
Note:LA SPINTARELLA INCONFESSABILE DATA AI MORALISTI
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Howard Marvel
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England’s Factory Act of 1833,
Note:UNALEGGE NEL SETTORE TESSILE
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banned the use of child workers under 9 years of age, and restricted hours and work conditions for those under 18.
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Prominent members of England’s landed aristocracy had long sought to bring cotton mills under the protective wing of government, without success.
Note:FALLIMENTO QUANTO LA LEGGE ERA CHIESTA DAI LATIFONDISTI
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new manufacturing plants was being driven by steam engines rather than by water wheels. The newer steam-driven plants required less labor
Note:TESSITURE MECCANIZZATE E NO
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The older plants were thus seen as abusive
Note:LOTTA X LA DICHIARAZIONE DI ABUSIVISMO
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the factory districts supported the new Factory Act,
Note:L IMPEGNO DELLE TESSITURE MECCANIZZATE
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Booth’s newly organized Salvation Army was working to improve the lives and save the souls of the city’s downtrodden (Hattersley 1999). This time, instead of Bootleggers and Baptists, Methodists and brewers formed the coalition opposing Booth’s efforts.
Note:COALIZIONE CONTRO L ESERCITO DELLE SALVEZZA
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more traditional churches felt threatened by this new competition from Booth and his unconventional methods,
Note:LE MOTIVAZIONI DEI METODISTI
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Methodist bishops and other religious leaders struggled to shut down the army’s successful efforts to attract members and funds for its growing enterprise.
Note:COMPETIZIONE RELIGIOSA
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Salvation Army preachers were jailed for disturbing the peace with their sermons and music,
Note:TURBAMENTO ORDINE PUBBLICO
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In spite of the opposition, Booth’s strategy gained momentum—and eventually the support of wealthy philanthropists.
Note:LOTTA X I FONDI DEI FILANTROPI
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Efforts to regulate the Salvation Army,
Note:TACITARE CN LE REGOLE... BIRRAI E METODISTI... ALLEANZA NN DICHIARABILE
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Cooperative Strategy
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Walmart was a crucial supporter of President Obama’s Affordable Care Act, which requires the mega-retailer’s competitors to pony up health benefits as well.
Note:ALLEANZA WALMART OBAMA... PER COSTRINGERE I COMPETITOR AD UNIFORMARSI AGLI ALTI STANDARD
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Like Walmart, the union was interested in raising the costs of its competitor—nonunion labor.
Note:I SINDACATI SI ACCODANO
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forming their own Baptist groups or merely funding Baptist efforts already under way, Bootleggers
Note:STRATEGIA COOPERATIVA
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Chesapeake Corporation is one of the nation’s most innovative and successful natural gas producers. It, too, would like to see coal displaced by gas. Chesapeake made a $26 million donation to the Sierra Club to help fund an attack on coal directed to the EPA, with Sierra leading the charge (Martosko 2012).
Note:LA GURRA CARBONE E GAS
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Coordinated Strategy
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The fourth and final category of Bootlegger/Baptist interactions involves political actors—often presidents—taking the initiative to yoke together interest groups
Note:COORDINAZIONE POLITICA
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The 2008 credit-market meltdown brought with it the collapse and taxpayer bailout of Fannie Mae and Freddie Mac;
Note:LA CRISI FINANZIARE... NECESSITÀ DI ESPANDERE GLI AFFARI
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In 1995, a new interest group emerged, dedicated to expanding government efforts to help Americans purchase homes: the NHS, which we mentioned in our last section as an example of a Baptist group
Note:NHS COME ASSOCIAZIONE MORALISTA
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The NHS coalition was not a winning one, however, because it had no true Baptists. But this oversight was addressed as quickly as one could say “homeownership.”
Note:IL DIRITTO ALLA CASA
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With strong private-sector support, President William J. Clinton called on Freddie Mac and Fannie Mae to reduce their lending standards and greatly expand mortgage lending for families,
Note:LE RICHIESTE DI CLINTON
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even as regulators warned that “subprime lenders were saddling borrowers with mortgages they could not afford, the U.S. Department of Housing and Urban Development (HUD) helped fuel more of that risky lending” (Leonnig 2008).
Note:PRESTARE PRESTARE PRESTARE Clinton e le pressioni della politica come origine della crisi finanziaria del 2007
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Final Thoughts
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the extraordinary 1970–80 regulatory period, when the new social regulatory agencies were first emerging,
Note:periodo straordinario di crescita a valanga della regolamentazione
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The goals of social regulation were, more often than not, the goals of interest groups that included civic and religious organizations
Note:il ruolo delle lobby nell 'esplosione delle regole no. Lobby che comprendono anche organizzazioni religiose eccetera
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“Where appropriate and permitted by law, each agency may consider (and discuss qualitatively) values that are difficult or impossible to quantify, including equity, human dignity, fairness, and distributive impacts” (White House 2011).
un esempio di direttiva vaga che lascia campo libero alla burocrazia