Special interest groups and lobbying

Does the formation of special interest groups (SIGs) always bring in overall inefficiencies in the economies they operate? Does having SIGs always imply re-distribution of wealth to the cartels?

Did the car lobby hamper the growth of public transport in the US? Does the farm bill with its tariffs and subsidies impact the US economy and the consumers as a whole?

In today’s world, it does seem so. The latest is of course the story of the financial cartel that took over the power in the last 3 decades or so. Simon Johnson lays it our clearly and succinctly in his article on the Atlantic: http://www.theatlantic.com/doc/200905/imf-advice


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