Saturday, May 16, 2015

Interest Groups

“There are many powerful and well- financed lobbies with mass support in existence now, but these lobbying organizations do not get that support because of their legislative achievements. The most powerful lobbying organizations now obtain their funds and their following for other reasons, as later parts of this study will show. Some critics may argue that the rational person will, indeed, support a large organization, like a lobbying organization, that works in his interest, because he knows that if he does not, others will not do so either, and then the organization will fail, and he will be without the benefit that the organization could have provided. This argument shows the need for the analogy with the perfectly competitive market. For it would be quite as reasonable to argue that prices will never fall below the levels a monopoly would have charged in a perfectly competitive market, because if one firm increased its out- put, other firms would also, and the price would fall; but each firm could foresee this, so it would not start a chain of price-destroying increases in output. In fact, it does not work out this way in a competitive market; nor in a large organization. When the number of firms involved is large, no one will notice the effect on price if one firm increases its output, and so no one will change his plans because of it. Similarly, in a large organization, the loss of one dues payer will not noticeably increase the burden for any other one dues payer, and so a rational person would not believe that if he were to withdraw from an organization he would drive others to do so. The foregoing argument must at the least have some relevance to economic organizations that are mainly means through which individuals attempt to obtain the same things they obtain through their activities in the market. Labor unions, for example, are organizations through which workers strive to get the same things they get with their individual efforts in the market-higher wages, better working conditions, and the like.”

According to Mancur Olson’s book “ The Logic of collective action public goods and the Theory of groups” stated in the quote that people choose lobbying or get involve in unfair market for their own benefit. I agree with them government organizations will do anything to protect their benefits. After all, the world is about survival of the fittest. That makes us no different from Animals, and our so-called “humanity” really exists on the borderlines not within us.


People are selfish because we don’t share same mentality, we are out for what we want and don’t think of others. Leaders are suppose to do the right things for everyone their leading instead they seek for what they can gain for themselves. Even if there is one person who wants to do the right things, there is not enough support for them.  So it would be nice if good doing people actually spoke up enough to make positive changes in this world.

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