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Professor Greg Mankiw notes that in his hometown of Wellesley police recently shut down a (ahem) massage business. This is the second time in the last six months that the police of busted such an enterprise.

But here’s the interesting fact. One of the people just arrested, William Eastwick, is the same guy who tipped off the police on the first arrest.

Eastwick tipped Wellesley Police off to that operation, said [Wellesley Police Sgt. Marie] Cleary, although it is unclear why he did that.

Clearly, Cleary is unclear, but to Dr. Mankiw, it’s perfectly clear.

Like any businessman, Mr Eastwick prefers to have fewer competitors. Some businessmen lobby Congress for trade restrictions. Others alert the police to the brothel down the block. And when using the power of the state to thwart competition, they can both pretend to be acting in the public interest.

Sometime you need a small example to see the big picture. I wouldn’t say the state and Mr. Eastwick are in bed together, they just provide similar services.

Posted by edelfenbein at July 2, 2008 3:47 PM