The Size and Growth of the U.s. Government

Public choice] analyzes the motives and activities of politicians, civil servants and government officials as people with personal interests that may or may not coincide with the interest of the general public they are supposed to serve. It is an analysis of how people behave in the world as it is. It does not follow that whenever laissez faire falls short government interference is expedient; since the inevitable drawbacks of the latter may, in any particular case, be worse than the shortcomings of private enterprise. —Harry Sidgwick, 1887 2 C h a p t e r F o c u s ■ How large is the government sector, and what are the main activities undertaken by government? ■ What are the differences and similarities between market and government actions? ■ What insights can economics provide about the behavior of voters, politicians, and bureaucrats? How will their actions affect political outcomes? ■ When is democratic representative government most likely to lead to economic efficiency? ■ Why will there sometimes be a conflict between winning politics and economic efficiency? ■ How does economic organization influence the efficiency of resource use?