Why Good Politics is Bad Economics
People, normally tend to think of government as a self-less and benevolent entity looking out for the overall interest of the public. Public choice theory which studies the relationship between politics and economics , however suggests that various actors that interact in the political market-place such as politicians, bureaucrats, special interest groups have their own self-interest to cater to.
Politics is also full of people with their self-interest. For eg politicians are interested in securing power, bureaucrats are looking for more money, special interest groups seeking subsidies and protection from competition etc. Hence, such interactions usually result in policies and decisions that make general public worse off.
Politics is also full of people with their self-interest. For eg politicians are interested in securing power, bureaucrats are looking for more money, special interest groups seeking subsidies and protection from competition etc. Hence, such interactions usually result in policies and decisions that make general public worse off.
Along with my friend, I have made a video on this issue with an example from Nepal. We have taken the performance of state-owned enterprises and their continued existence despite their huge losses and decline in relevance as an example of such interaction.
We made this video for an international video contest being organized by The Fraser Institute, a think tank from Canada. Besides the Jury Awards, there is an additional award called 'Viewer's Choice Award' which is given to the video entry with the highest number of likes in Youtube.
So, please watch our video, hit like in YouTube (if you like the video that is) and share it and help us win the award.
Thank you for your support!
