When a policy provides large benefits to a small group but spreads costs across millions of taxpayers, the small group has strong incentives to organize and lobby. The large group of taxpayers each pays only a tiny amount, so they dont organize to oppose the policy. This structural imbalance explains why many inefficient policies persist.
This principle explains why special interests often win against the public good. It shows how the structure of political incentives systematically favors organized minorities over diffuse majorities, fundamental to understanding why democracy sometimes produces unpopular policies.
This principle explains why special interests often win against the public good. It shows how the structure of political incentives systematically favors organized minorities over diffuse majorities, fundamental to understanding why democracy sometimes produces unpopular policies.