Martin Feldstein is one of of the most influential economists of the 20th Century, and his ideas are still enormously popular among Conservatives. But while some of these ideas may sound good in the abstract, and in theory, they don't always track well when applied to the real world. For example, he writes in Capitalism and Freedom that "voluntary cooperation" of the private sector can ensure freedom and serve as a brake on government expansion and abuse.
Feldstein was an idealist. It may well be true that the private sector can prevent abuse by government, but what of constraints on abuse of consumers by corporations? Does Feldstein really believe that consumers are always free to take their business elsewhere? In fully competive capitalism, perhaps yes, but it is in the nature of capitalist firms to eliminate competition where they can, and seek a monopoly. In the real world, consumers are not always free to take their business elsewhere. Regulation by government is sometimes necessary to prevent gouging of consumers who have no realistic choice of product or service providers. Examples include so-called "natural monopolies" such as electricity or rail transportation. In the interest of efficiency, government sanctions single-provider operations.
Government regulation is supposed to prevent collusion in the private sector to the detriment of consumers. Again, however, reality intrudes and there sometimes arises collusion between government and corporations. Who regulates the regulators? Voters, that's who.
Altruism is a wonderful thing, but it can be a rarity in the real world.
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