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Interest groups lead to more attention to their causes. This brings increased public spending and higher taxes.

In some cases, this is good. There are some causes that would not have gotten attention without the efforts of lobbyists.

However, economists tend to think of interest groups as inherently bad. This is because interest groups form primarily because there are public funds to be gotten, and not because the cause is good. The larger the possibility of getting funds, the more effort the interest group will spent -- regardless of what the benefits to society are.

Econonomists call this "rent-seeking".

2007-03-26 10:32:42 · answer #1 · answered by Allan 6 · 0 0

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