Tea Party Economics
Readers of this Blog know that I have a longstanding interest in the debate over the scope of the federal government’s power to regulate the economy under the Constitution. I am also inclined to take the Tea Party Movement seriously as a political phenomenon rather than writing them off as a group of buffoons or extremists, unworthy of attention. For that reason, I read with some interest Kate Zernike’s article in the New York Times on October 2 that discussed the writers whose books are most often said comprise the intellectual foundation of the Tea Party movement.
Taking pride of place among the “long-ago texts” highlighted in the article is Friedrich Hayek’s 1944 book The Road to Serfdom. Hayek is often cited by the movement’s followers for his argument that a government that intervenes in the economy will inevitably intervene in every aspect of its citizen’s lives. If one accepts this premise, it is easy to understand why members of the Tea Party Movement reacted with hostility to the Troubled Asset Recovery Program (TARP), health care reform, and the bailout of the domestic auto industry. For Tea Party followers, these separate policies – when viewed together — comprise a centrally planned economy reminiscent of the Soviet Union’s infamous Five Year Plans.