Colin McNickle At Large

Weekend essay: Allan Meltzer, 1928-2017

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One of the greatest economists that many people might never have heard of died on May 8. But Allan Meltzer’s contributions to economics – on topics such as central banking, inflation, the cost of the regulatory state and, of course, his vigorous defense of capitalism — were enormous.

 
After all, Mr. Meltzer proffered cogent economic thought in a discipline too often dominated by thought illiberal.

 
Meltzer, a friend to this institute, was 89. He had been a professor of political economy at Carnegie Mellon University for 60 years. True to form, he was working on yet another book at the time of his death. By any account, his was an incredible, and incredibly productive, run.

 
And given his work involving international economics – think of his well-founded points of order that International Monetary Fund and the World Bank had grown too big for their britches — it is no hyperbole to say the world sorely will miss Meltzer.

 
I was honored in 2012 to be on the receiving end of Meltzer’s intellectual benevolence. I was editorial page editor of the Pittsburgh Tribune-Review at the time. He sent me an “uncorrected advance reading copy” of his new book “Why Capitalism?”

 
The narrative was pristine, as were his arguments.

 
At under 150 pages, it was (and remains) a wonderfully accessible primer that should be mandatory reading in every institution of higher learning, if not in high schools.
Perhaps the best way to honor Meltzer upon his death is with his own words, taken from the preface to that book:

 
“Democratic capitalism has three unequaled strengths. It is the only system that achieves both economic growth and individual freedom, and it adapts to the many diverse cultures of the world. Adapting to cultures means that it works well with people as they are, not as someone would like to make them. …

 
“Alternatives to capitalism, whether socialism, communism, fascism, or some religious orthodoxies, offer some groups (a) utopian vision of mankind that becomes the one ‘right path.’ Utopian visions and orthodoxies always bring enforcement, often brutal enforcement.

 
“The 20th century saw many such outcomes. None achieved both higher living standards and greater individual freedom. National Socialism, Soviet and Chinese Communism instead produced mass murders of millions.

 
“This should have extinguished the appeal of utopian visions, but it has not. Many still believe that social justice can only be achieved by ending or severely regulating capitalism. …

 
“Capitalism is not a perfect solution to human problems. Perfect solutions are utopian; capitalism is a human institution that works with humans as they are. …

 
“People are not perfect; capitalism and all its many alternatives are not responsible for what goes wrong. People, most often people in powerful positions, are. Capitalism disperses and limits power while the alternatives concentrate power in a few hands.”

 
The world is a better place for Allan Meltzer’s scholarship and his persistence in not simply stating his case but in making it. May this gentle and affable giant of economics rest in peace.

 
Colin McNickle is a senior fellow and media specialist at the Allegheny Institute for Public Policy (cmcnickle@alleghenyinstitute.org).

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Colin McNickle
Colin McNickle

Colin received his B.G.S. from Ohio University. The 40-year journalism veteran joined the Institute in October 2016. That followed a 22-year career with the Pittsburgh Tribune-Review, 18 as director of editorial pages for Trib Total Media. Prior that, Colin had a long and varied career in media — from radio, newspapers and magazines, to United Press International and The Associated Press.

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