[...] While the theory of public choice can be broadly applied, it is the ideas of “special interests” and “rational ignorance” that are useful in understanding last week’s tea parties.
Here’s an example of public choice at work. Let’s say teachers could benefit by $2000 each per year (in higher pay or benefits, smaller classes, etc.) from a piece of legislation currently under debate. But the cost per taxpayer averages just $15 per year.
The “special interests” (teachers and politicians) have substantial personal incentive to see that the bill is passed. Teachers, who benefit directly, will use time and money to lobby for the bill. And lawmakers will expect campaign contributions, votes, or both, in exchange for their support. But the taxpayer will remain “rationally ignorant” of the whole process. Why spend time even thinking about an ssue when the cost is only $15 per year?
This is why government will tend to grow in excess of what a true democracy really wants. That is, until those $15 hits accumulate to such a level that people have finally had enough. And then, in a seemingly spontaneous eruption, the average voter finds the energy to fight back.[...]
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