University of Dallas News

Issue date: 2/2/10 Section: News

Media Credit: Peter McDonough Dr. Edward P. Stringham considers whether government acts in its citizens' best interests.

George Washington once said, "Government is not reason; it is not eloquent; it is force. Like fire, it is a dangerous servant and a fearful master." This was just one of the quotes presented by Dr. Edward P. Stringham in his Wednesday lecture entitled "The Economics of Politics - Reasons Why the Government May Not Act in Your Best Interest."

Stringham is the Shelby Cullom Davis associate professor of American business and economic enterprise at Trinity College in Hartford, Conn. The lecture was sponsored by Student Programming at the University of Dallas and the Intercollegiate Studies Institute.

Stringham presented the views of the public choice school of economics, which applies economic theory to what government does to decide whether or not they will always act in the interest of the people. In using economic theory to study non-market decision making (more simply known as "the economics of politics"), researchers apply assumptions about private people to the government.

Stringham asked: "If people are greedy in the private sector and we suddenly put them into office, do we expect them to sprout wings and become perfect altruists?"

Stringham outlined 10 key reasons why government might not act in the interest of the people:

1. "Not everyone has the same interests, and some people may use government for their own advantage," Stringham said.

2. "Government has the ability to use force against those who do not consent," Stringham said. He contrasted this ability with charities and businesses, who must persuade people to donate to their cause or buy their goods, and who cannot punish those who do not agree.

3. "Exit options from government are often difficult," Stringham said. It is difficult to simply leave the country and find a new government every time you do not agree with them. Stringham again contrasted this to businesses, which are possible to leave if service is not satisfactory.

4. "Elections are at infrequent intervals," Stringham added, pointing out that elected officials have little incentive to follow up on campaign promises, whereas in the market, businesses must please customers every day.

5. "Government, even in democracy, only gives voters a few (often two) choices in an election," Stringham said. Each party tends to gravitate to the center during an election to please as many people as possible, and that votes for third party candidates are often wasted votes, Stringham argued.

Continued...

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