18: Public Economy
- Page ID
- 181250
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\(\newcommand{\avec}{\mathbf a}\) \(\newcommand{\bvec}{\mathbf b}\) \(\newcommand{\cvec}{\mathbf c}\) \(\newcommand{\dvec}{\mathbf d}\) \(\newcommand{\dtil}{\widetilde{\mathbf d}}\) \(\newcommand{\evec}{\mathbf e}\) \(\newcommand{\fvec}{\mathbf f}\) \(\newcommand{\nvec}{\mathbf n}\) \(\newcommand{\pvec}{\mathbf p}\) \(\newcommand{\qvec}{\mathbf q}\) \(\newcommand{\svec}{\mathbf s}\) \(\newcommand{\tvec}{\mathbf t}\) \(\newcommand{\uvec}{\mathbf u}\) \(\newcommand{\vvec}{\mathbf v}\) \(\newcommand{\wvec}{\mathbf w}\) \(\newcommand{\xvec}{\mathbf x}\) \(\newcommand{\yvec}{\mathbf y}\) \(\newcommand{\zvec}{\mathbf z}\) \(\newcommand{\rvec}{\mathbf r}\) \(\newcommand{\mvec}{\mathbf m}\) \(\newcommand{\zerovec}{\mathbf 0}\) \(\newcommand{\onevec}{\mathbf 1}\) \(\newcommand{\real}{\mathbb R}\) \(\newcommand{\twovec}[2]{\left[\begin{array}{r}#1 \\ #2 \end{array}\right]}\) \(\newcommand{\ctwovec}[2]{\left[\begin{array}{c}#1 \\ #2 \end{array}\right]}\) \(\newcommand{\threevec}[3]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \end{array}\right]}\) \(\newcommand{\cthreevec}[3]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \end{array}\right]}\) \(\newcommand{\fourvec}[4]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \\ #4 \end{array}\right]}\) \(\newcommand{\cfourvec}[4]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \\ #4 \end{array}\right]}\) \(\newcommand{\fivevec}[5]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \\ #4 \\ #5 \\ \end{array}\right]}\) \(\newcommand{\cfivevec}[5]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \\ #4 \\ #5 \\ \end{array}\right]}\) \(\newcommand{\mattwo}[4]{\left[\begin{array}{rr}#1 \amp #2 \\ #3 \amp #4 \\ \end{array}\right]}\) \(\newcommand{\laspan}[1]{\text{Span}\{#1\}}\) \(\newcommand{\bcal}{\cal B}\) \(\newcommand{\ccal}{\cal C}\) \(\newcommand{\scal}{\cal S}\) \(\newcommand{\wcal}{\cal W}\) \(\newcommand{\ecal}{\cal E}\) \(\newcommand{\coords}[2]{\left\{#1\right\}_{#2}}\) \(\newcommand{\gray}[1]{\color{gray}{#1}}\) \(\newcommand{\lgray}[1]{\color{lightgray}{#1}}\) \(\newcommand{\rank}{\operatorname{rank}}\) \(\newcommand{\row}{\text{Row}}\) \(\newcommand{\col}{\text{Col}}\) \(\renewcommand{\row}{\text{Row}}\) \(\newcommand{\nul}{\text{Nul}}\) \(\newcommand{\var}{\text{Var}}\) \(\newcommand{\corr}{\text{corr}}\) \(\newcommand{\len}[1]{\left|#1\right|}\) \(\newcommand{\bbar}{\overline{\bvec}}\) \(\newcommand{\bhat}{\widehat{\bvec}}\) \(\newcommand{\bperp}{\bvec^\perp}\) \(\newcommand{\xhat}{\widehat{\xvec}}\) \(\newcommand{\vhat}{\widehat{\vvec}}\) \(\newcommand{\uhat}{\widehat{\uvec}}\) \(\newcommand{\what}{\widehat{\wvec}}\) \(\newcommand{\Sighat}{\widehat{\Sigma}}\) \(\newcommand{\lt}{<}\) \(\newcommand{\gt}{>}\) \(\newcommand{\amp}{&}\) \(\definecolor{fillinmathshade}{gray}{0.9}\)- 18.0: Introduction
- This page examines the relationship between economics and democracy, addressing voter participation challenges, special interest influence, and systemic flaws in democratic governance. It highlights the impact of tariffs on costs and public engagement while referencing Mancur Olson's insights on the power of organized groups over the general public.
- 18.1: Voter Participation and Costs of Elections
- This page examines rational ignorance and election expenses affecting U.S. voting behavior, highlighting lower voter turnout in congressional and local elections compared to presidential ones. It discusses the impact of increased campaign spending and the influence of special interest groups following the Citizens United v. FEC ruling. Despite various proposals to boost voter turnout, recent state laws may pose additional barriers to voting.
- 18.2: Special Interest Politics
- This page discusses the influence of special interest groups and lobbyists on political campaigns, notably how they can sway legislation for their benefit, such as through tariffs and pork-barrel spending. It highlights the effectiveness of well-funded organizations like AARP in advocating for the elderly compared to less organized groups.
- 18.3: Flaws in the Democratic System of Government
- This page examines the limitations of democracy and government efficiency, highlighting issues like the median voter theory and the influence of special interest groups on economic policy. It contrasts government actions with market dynamics, noting that majority rule can misrepresent public preference, as seen with sugar quotas. Additionally, it discusses the 2009 U.S.
- 18.4: Key Terms
- This page discusses various political concepts, including logrolling (legislators trading votes), median voter theory (aligning policies with the median voter), pork-barrel spending (benefiting specific districts), rational ignorance (voters weighing costs and benefits), the influence of small special interest groups, and voting cycles (circular preferences among options).
- 18.5: Key Concepts and Summary
- This page explores voter participation, focusing on rational ignorance as a reason for low turnout, where individuals feel their votes hold little weight. It discusses special interest politics, which sees small groups influencing outcomes while the larger public remains apathetic. The text also touches on democratic flaws like voting cycles and divided votes that hinder clear majority preferences.
- 18.6: Self-Check Questions
- This page explores the complexities of voting behavior and decision-making, addressing how the internet affects voter turnout and the implications of rational ignorance. It examines costs related to voting, the influence of special interest groups, challenges in consensus-building among groups, and an election where a minority candidate wins despite majority preference. The text raises critical questions about legislators' choices and the limitations of community impact on policy.
- 18.7: Review Questions
- This page examines voting dynamics and decision-making in government, focusing on rational ignorance's effects on participation, the sway of small interest groups, pork-barrel spending, and legislators' choices beyond their districts. It discusses the obstacles voting cycles create for consensus and compares revenue-raising approaches of government agencies versus private companies, impacting their decision-making.
- 18.8: Critical Thinking Questions
- This page examines questions about political participation and lobbying, addressing why individuals pursue political information and how to increase voter turnout. It delves into the complexities of corporate lobbying, the role of special interest groups, the implications of regulations on businesses and the public, and critiques the "first past the post" voting system. The page also reflects on the influence of movements like Occupy Wall Street on legislative changes.
- 18.9: Problems
- This page discusses a proposed smoking ban in Tobaccoville expected to provide $200 million in benefits to 1 million residents, averaging $200 each. While it imposes $10 million in costs on two tobacco companies, the net benefit amounts to $190 million. Due to the substantial positive net benefit, the ban is likely to be approved.