Self-Check Questions

Key Terms

logrolling the situation in which groups of legislators all agree to vote for a package of otherwise unrelated laws that they individually favor median voter theory theory that politicians will try to match policies to what pleases the median voter preferences pork-barrel spending spending that benefits mainly a single political district rational ignorance the theory that rational people will not vote if the costs of becoming informed and voting are too high or because they know their vote will not be decisive in the election special interest groups groups that are small in number relative to the nation, but well organized and thus exert a disproportionate effect on political outcomes voting cycle the situation in which a majority prefers A over B, B over C, and C over A

Key Concepts and Summary

18.1 Voter Participation and Costs of Elections

The theory of rational ignorance says voters will recognize that their single vote is extremely unlikely to influence the outcome of an election. As a consequence, they will choose to remain uninformed about issues and not vote. This theory helps explain why voter turnout is so low in the United States.

18.2 Special Interest Politics

Special interest politics arises when a relatively small group, called a special interest group, each of whose members has a large interest in a political outcome, devotes considerable time and energy to lobbying for the group’s preferred choice. Meanwhile, the large majority, each of whose members has only a small interest in this issue, pays no attention. We define pork--barrel spending as legislation whose benefits are concentrated on a single district while the costs are spread widely over the country. Logrolling refers to a situation in which two or more legislators agree to vote for each other’s legislation, which can then encourage pork-barrel spending in many districts.

18.3 Flaws in the Democratic System of Government

Majority votes can run into difficulties when more than two choices exist. A voting cycle occurs when, in a situation with at least three choices, choice A is preferred by a majority vote to choice B, choice B is preferred by a majority vote to choice C, and choice C is preferred by a majority vote to choice A. In such a situation, it is impossible to identify what the majority prefers. Another difficulty arises when the vote is so divided that no choice receives a majority. A practical approach to microeconomic policy will need to take a realistic view of the specific strengths and weaknesses of markets as well as government, rather than making the easy but wrong assumption that either the market or government is always beneficial or always harmful.

Self-Check Questions

1 . Based on the theory of rational ignorance, what should we expect to happen to voter turnout as the internet makes information easier to obtain? 2 . What is the cost of voting in an election? 3 . What is the main factor preventing a large community from influencing policy in the same way as a special interest group? 4 . Why might legislators vote to impose a tariff on Egyptian cotton, when consumers in their districts would benefit from its availability? 5 . True or false: Majority rule can fail to produce a single preferred outcome when there are more than two choices. 6 . Anastasia, Emma, and Greta are deciding what to do on a weekend getaway. They each suggest a first, second, and third choice and then vote on the options. Table 18.2 shows their first, second, and third choice preferences . Explain why they will have a hard time reaching a decision. Does the group prefer mountain biking to canoeing? What about canoeing compared to the beach? What about the beach compared to the original choice of mountain biking? Anastasia Emma Greta First Choice Beach Mountain biking Canoeing Second Choice Mountain biking Canoeing Beach Third Choice Canoeing Beach Mountain biking TABLE 18.2 7 . Suppose there is an election for Soft Drink Commissioner. The field consists of one candidate from the Pepsi party and four from the Coca-Cola party. This would seem to indicate a strong preference for Coca- Cola among the voting population, but the Pepsi candidate ends up winning in a landslide. Why does this happen?

Review Questions

8 . How does rational ignorance discourage voting? 9 . How can a small special interest group win in a situation of majority voting when the benefits it seeks flow only to a small group? 10 . How can pork-barrel spending occur in a situation of majority voting when it benefits only a small group? 11 . Why do legislators vote for spending projects in districts that are not their own? 12 . Why does a voting cycle make it impossible to decide on a majority-approved choice? 13 . How does a government agency raise revenue differently from a private company, and how does that affect the way government makes decisions compared to business decisions?

Critical Thinking Questions

14 . What are some reasons people might find acquiring information about politics and voting rational, in contrast to rational ignorance theory? 15 . What are some possible ways to encourage voter participation and overcome rational ignorance? 16 . Given that rational ignorance discourages some people from becoming informed about elections, is it necessarily a good idea to encourage greater voter turnout? Why or why not? 17 . When Microsoft was founded, the company devoted very few resources to lobbying activities. After a high- profile antitrust case against it, however, the company began to lobby heavily. Why does it make financial sense for companies to invest in lobbyists? 18 . Representatives of competing firms often comprise special interest groups. Why are competitors sometimes willing to cooperate in order to form lobbying associations? 19 . Special interests do not oppose regulations in all cases. The Marketplace Fairness Act of 2013 would require online merchants to collect sales taxes from their customers in other states. Why might a large