Question

legislation for stricter fuel economy standards for new cars produced in the united states will benefit each resident $50 (lower transportation costs, cleaner air, etc). for well over $15 trillion dollars in aggregate benefits. the cost of the legislation to domestic auto manufacturers will be $500 million. according to special interest politics, since the benefits of the legislation clearly outweigh the coats the policy will easily pass with little opposition.

True or False

Answer 1

Special interest politics implies that special interest groups by lobbying their case in effective manner are able to convince the policy making authorities to take care of their concern while formulating the policies.

It has been stated that strict fuel standard will accrue a benefit of $50 to each resident of United States resulting in a total benefit of $15 trillion.

However, this legislation will cost $500 million to manufacturers of automobiles as they comply with the standards set.

Even though benefit to consumers is significantly higher than cost to manufacturers, it is rather impossible to unite all Americans on this issue to press for the legislation. On the other hand, manufacturers being fewer in number can better organize themselves to oppose the legislation.

Thus,

According to special interest politics, due to better organization and coordination, manufacturers of automobiles would able to influence the policymakers in significant manner and can create very strong opposition in tha passage of the bill.

Hence, the given statement is False.