Amount Quote by Paul Krugman
“Governments do not necessarily act in the national interest, especially when making detailed microeconomic interventions. Instead, they are influenced by interest group pressures. The kinds of interventions that new trade theory suggests can raise national income will typically raise the welfare of small, fortunate groups by large amounts, while imposing costs on larger, more diffuse groups.”
About This Quote
Source Book: The Return of Depression Economics and the Crisis of 2008, 2009
Governments often prioritize narrow interest groups over the broader national good when crafting detailed economic policies.
In simple terms: Policies may favor small groups at the expense of the many.
Key Takeaway
Seek policies that benefit the whole population.
Themes
government
interest groups
policy
economics
Mood
critical
analytical
Type
policy
economic.
When to use this quote
- tax reform
- regulation design
- social welfare programs
- trade negotiations
Key Concepts
public choice
distributional effects
trade theory
Questions to Reflect On
- What mechanisms ensure policies serve the wider public?
- How can small groups' influence be limited?
A Different Perspective
Balancing group interests is politically challenging and may face resistance.
