Friday, June 1, 2012

Why Politicians Don't Cut Spending (Besides Being Spendthrifts At Heart)


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.

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