Public Choice: Why Politicians Don’t Cut Spending

Why do politicans never seem to cut government spending? Using public choice economics, or the economics of politics, Prof. Ben Powell shows how voters are rationally ignorant of what politicians do. This leads to a phenomenon called “concentrated benefits and dispersed costs,” which favors recipients of government payments at the expense of the average taxpayer.

2 Comments

  1. Ryan Boyd

    It is an important quandary to think of a way to make people care about things that ultimately affect them minimally. There’s not much reason to actually care about losing small bits of your money to a subsidy when the cost of fighting it is too high. Thus, apathy grows.

  2. Anonymous

    It affects everyone when this happens, yes it may be smaller amounts that go to these different groups like farmers, but after time and the more groups getting money this can really start to add up.  

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