Ivan Jankovic is a Serbian-born economist and philosopher, an assistant professor of economics at the University of Mary in Bismarck, North Dakota. His primary areas of research are Austrian economics, public choice, and the history of economic thought, as well as theoretical and practical links between free-market economics and political decentralization. Follow @giovanelo74.
Ivan Jankovic, PhD
Articles from Ivan Jankovic, PhD
Federal grants and transfers are the techniques of choice used by socialist regulators in all federal countries, because in such countries it’s difficult to impose one-size-fits-all national schemes from the top down. Hence, federal spending power greases the wheels of reform by bribing the population and docile politicians and blackmailing and boxing in politicians skeptical of federal meddling.
When Arthur Laffer drew this famous picture on a napkin to Donald Rumsfeld and Dick Cheney during a lunch in 1974, the reaction was ecstatic: that’s exactly what they needed, some justification for doing what politicians are best at doing anyway: giving away the goodies that don’t cost anything. The best of both worlds!