Chapter 9 Slides

Interest Groups
Ch. 9
• Fun facts:
– 64% of Americans believe “the government is run
for the benefit of a few big interests”
– 39% of Americans believe “special interests” are
what’s most wrong with the government today
• Americans have always been suspicious of
“special interest politics”
– All the way back to Madison and factions
• Madison’s view is based on one big
assumption:
– There is a NATIONAL INTEREST
– This makes any group working against the needs
of the nation a real problem
BUT:
• What if that assumption is wrong?
• Challenge:
– Any student who comes with a policy or law that’s
to everyone’s advantage gets an A in this class.
– Seriously.
• Here’s the problem:
– In a large, diverse country, different interests
ALWAYS conflict
– It’s hard to speak of the “public interest” if there’s
not really one “public”
• Ex: South Carolina & Myrtle Beach bike week
• Madison was right about:
– Democracy & freedom making group activity
inevitable
– Pursuit of self-interest being divisive
– Government’s structure can limit the power of
“factions”
• Difference between interest groups & parties:
– Political parties try to control the government
• Get their members elected to office
– Interest groups try to influence the government
• This process is called lobbying
• Interest groups & lobbying exist at all levels of
government:
– National -> NRA, MADD, ACLU
– State -> SC Chamber of Commerce, SCEA
– Local -> Florence Chamber of Commerce
• Neighborhood associations
• School boosters
• Arts associations
• Interest groups & political parties are similar
– Both are linkage institutions
• Def: Organizations that exist to connect individuals to
the government
OUTPUT
INPUT
GOVERNMENT
FEEDBACK
• On the input side, groups provide:
– Political information and technical information
• Political information involves the “politics” of an issue
– Duh.
– 2 types:
1. The scope of the issue
2. The salience of the issue
Pluralism
• Opposite Madison, some people came to
believe:
– Interest groups might play a positive role
– Shouldn’t tear the country apart
• Why do groups form?
– Change! Social, economic, and political.
• Change is disruptive!
• Ex: Horses vs. cars
• To pluralists:
– People who have “suffered” because of changes
form groups
– They ask the gov’t for help with problems
• Ex: Women’s rights, civil rights
• In their view, Madison was wrong about
almost everything
– Things are always changing
– So, there are always new winners and losers
– New groups are constantly emerging
• This is ultimately a benefit!
• In the long term:
– One group’s needs get met
– The “balance” might tip too far
– New groups challenge them
Problem
• Why isn’t everyone represented?
• If pluralists are right, the least fortunate have
the most incentive to organize
– But we don’t see groups of the homeless, teenage
mothers, drug addicts
Not quite.
• Difference between incentive to organize and
the ability to organize.
– Homeless people might need help, but might not
be very good at organizing to get it
Critique of Pluralism
• Economists argued:
– Groups don’t “just form”
• Somebody has to start them
– Used ideas about business to explain group
formation
• Businesses are started by entrepreneurs
– Def: an individual who uses her own resources to
bring a product to the market
– Motive = profit
– Risk = failure, loss of investment
• “Interest group entrepreneurs” try to get
people to buy membership in the group
• Problem: buying a group membership is
different from buying something like a car
– Private vs. collective (public) goods
• Ex:
– Organization for Moms Financing underGrads
(OMFG)
– $30 / year for membership
– Group wants $4000 tax credit for tuition
• Whether or not the group is successful, you
are better off NOT JOINING
• That’s the free-rider problem from chapter 1
• Interest group leaders must get past the free
rider problem to be successful
– How?
– Must provide selective incentives
• Extra benefits to people who join group
• A skilled entrepreneur finds selective
incentives that appeal to potential members
– One who’s really good could find benefits that get
people to join even if they disagree with the
group’s purpose
• Seriously.
• I bet at least 2 of you belong to a group that:
• Lobbies for less safe cars –AND-
• More pollution
• People don’t join AAA because they love smog
– The services are so good
– Members might not even realize the group lobbies
• That’s slick
National Rifle Association
• Membership costs $27 / year
– Benefits:
•
•
•
•
•
•
Choice of 4 magazine subscriptions
$10,000 life insurance
$1,000 firearms insurance
Hotel / rental car discounts
Prescription drug plan
Discounted LASIK surgery
– Pretty good bargain
• Problem:
– Money spent on selective incentives is money that
can’t be spent on lobbying
– Most groups are on limited budgets
• Solution:
– Find incentives that are appealing AND cheap!
3 Types of Selective Incentives
1. Material incentives
– Actual “stuff”
2. Purposive incentives
– Satisfaction from helping a “worthy cause”
3. Solidary incentives
– Networking, companionship, social benefits