Economics Lecture Austin Boyle 10 3 11 chapter 6 When the political process works well everyone pays a portion of the benefit received Special interests benefit a small number of constituents while spreading the costs widely Logrolling trading votes Pork barrel legislation benefits small groups at large expense usually for the home district of When the political process works poorly politician use of FSU paying for new sidewalks while the money could be better used elsewhere Earmarking the direction of budgeted funds to specific projects programs and locations example Shortsightedness effect shortsighted politicians will be gone before everything goes wrong when Causes of Political Process Working Poorly people vote for something to be paid for by later generations Rent control favor control actions by individuals and groups designed to restructure public policy in a manner that will either directly or indirectly redistribute more income to themselves or the projects they promote People waste resources Economic Way of Thinking of Government services and they both follow up on it Enforcing contracts two or more consenting people or groups agree to a trade or exchange of Even handed rule of law same rules for everyone no one is let off easier than someone else 4 Government Failures 1 Special interest effect 2 shortsightedness effect 3 rent seeking 4 weak incentives for operational efficiency
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