Saturday, January 14, 2012

Special interests vs. the public interest


Yesterday I blogged about experts and special interests groups lobbying for legislation to increase demand for their services.

A recent related example of this can be found in the regional newspaper Kouvolan Sanomat, where a health and construction expert suggested that all buildings should be subject to a inspection system similar to the one currently in place for cars.

This would surely be a great thing for the special interests the expert represents. Whether it would be it for the taxpayer and/or home owners is a different story. Mandatory car inspections can be motivated by the fact that car usage can impose consequences (externalities) on outsiders.  It is not evident that this is the case for houses.

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