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Pressure from interest groups

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The process of lobbying legislatures is itself becoming a big business. State legislatures are under the same kind of pressure from interest groups as the Senate and the House of Representatives. Talk briefly about how the use of special-interest lobbyists and its connection with the government failures and answer the following:

  • What are the roles of government in the market economy? Based the current economic conditions, to what extent should the government intervene in the market economy?
  • What are the justifications given in favor of more government involvement in the market economy? What are the reasons given in favor of less government involvement in the market economy?
  • Provide an example to discuss how special interests can succeed in perpetuating policies that are opposed by the majority of voters because the costs of organizing and motivating groups to take political action increase with group's size.

Reference no: EM131251963

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