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Why are concentrated interests and diffuse costs important in predicting legislative outcomes
Solution
But personal interest is no longer a safe criterion if individual interests are not left to counteract
and control each other. If one individual, or one class, can call in the aid of authority to ward off
the effects of competition, it acquires a privilege and at the cost of the whole community; it can
then make sure of profits not altogether due to the productive services rendered, but composed in
part of an actual tax upon consumers for its private profit; which tax it commonly shares with the
authority that thus unjustly lends its support. The legislative body has great difficulty in resisting
the importunate demands for this kind of privileges; the applicants are the producers that are to
benefit thereby, who can represent, with much plausibility, that their own gains are a gain to the
industrious classes, and to the nation at large, their workmen and themselves being members of
the industrious classes, and of the nation. - Jean-Baptiste Say
The taxes would be paid by the people over the whole country, but the benefits would go to the
few people in those particular locations. This type of spending is a rather gross waste of
resources that worsened over the years as the government has been allowed to do more
particularized things. - James M. Buchanan
So, in one country, the fruit of labor is taken from the workman by taxes, under pretence of the
welfare of the state; in another, by privileges, declaring labor a royal concession, and making one
pay dearly for the right to devote himself to it. The same abuse is reproduced under forms more
indirect, but not less oppressive, when, by means of custom-duties, the state shares with the
privileged industries the benefits of the taxes imposed on non-privileged classes. - J
Why are concentrated interests and diffuse costs important in predicti.docx

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  • 1. Why are concentrated interests and diffuse costs important in predicting legislative outcomes Solution But personal interest is no longer a safe criterion if individual interests are not left to counteract and control each other. If one individual, or one class, can call in the aid of authority to ward off the effects of competition, it acquires a privilege and at the cost of the whole community; it can then make sure of profits not altogether due to the productive services rendered, but composed in part of an actual tax upon consumers for its private profit; which tax it commonly shares with the authority that thus unjustly lends its support. The legislative body has great difficulty in resisting the importunate demands for this kind of privileges; the applicants are the producers that are to benefit thereby, who can represent, with much plausibility, that their own gains are a gain to the industrious classes, and to the nation at large, their workmen and themselves being members of the industrious classes, and of the nation. - Jean-Baptiste Say The taxes would be paid by the people over the whole country, but the benefits would go to the few people in those particular locations. This type of spending is a rather gross waste of resources that worsened over the years as the government has been allowed to do more particularized things. - James M. Buchanan So, in one country, the fruit of labor is taken from the workman by taxes, under pretence of the welfare of the state; in another, by privileges, declaring labor a royal concession, and making one pay dearly for the right to devote himself to it. The same abuse is reproduced under forms more indirect, but not less oppressive, when, by means of custom-duties, the state shares with the privileged industries the benefits of the taxes imposed on non-privileged classes. - J