Explain the special-interest effect
Please provide the best answer for the statement.
The special-interest effect is a situation where a small number of people will receive large gains at the expense of a much larger number of people who individually suffer small losses. The small group will be well-informed and highly vocal on the issue and press politicians for approval. The large number of people who will each suffer only small losses will not have the incentive to be informed or feel strongly about the issue. The result is that the politicians will support the special-interest program, whose supporters will vote in their favor, and the politicians will ignore the majority who do not feel strongly about the issue.
You might also like to view...
Which of the following is NOT true about the Great Depression?
A. Lasted from 1929-1933 B. unemployment rate was 25% and GDP fell 30% C. most severe downturn in US history D. severe inflation E. Stocks fell 90%
Social Security is used to redistribute income.
A. True B. False C. Uncertain