ECO 481: Public Choice Theory Introduction to Public Choice Dr. Dennis Foster

What is it all about? “New theory.” Are public “actors” different than private ones? Voter=consumer and politician=businessman The Ethics & Economics of Choosing Publicly: https://www.youtube.com/watch?v=HPRwvXzXzk4 Buchanan & Williams: https://www.youtube.com/watch?v=qSco-xFnrpg Reflections on Buchanan: https://www.youtube.com/watch?v=A7PtoStD3RY Simmons on Public Choice: http://tinyurl.com/nke5qgu

What is it all about? Even where we agree about private sector, gov’t is involved. Toy regulation on Stossel: http://www.youtube.com/watch?v=-r3aMsXPmXQ Does government solve all our problems? Does it solve any? “Too late, too much, too long.” “Welfare economists” – focus on “market failure.” They’re looking for flaws in a perfect system! Can government deliver on promises? Health care? Jobs? Global warming?

What is it all about? Public choice as a theory of government failure. Are there signs that this is becoming more and more accepted in the political arena? Is government the default for fixing “problems?” Are “problems” really even problems? [e.g., income inequality] Are market alternatives getting more serious attention? Is decentralization & competition viewed more favorably? Review reading list for weeks 1 and 2.

Voting – Curb Your Enthusiasm Term paper/project theme: Voting – Curb Your Enthusiasm Basic principles – liberty & freedom Operationalization – private property Ultimate objective – all voluntary actions Find a voting issue that violates our basic principles and leads to distorted and inefficient outcomes. Show how eliminating this vote will improve our well-being.

Voting – Curb Your Enthusiasm Term paper/project theme: Voting – Curb Your Enthusiasm For example … --College students should not vote in local elections. --Nor should city employees (likewise, state & federal) --Non-payers of property taxes should not vote to raise these taxes. --School employees should not vote in school bond elections. --Votes on minimum wages should not be allowed. --Don’t allow votes where non-voters pay. Look for specific votes (ballot propositions, by and large) Some references: https://ballotpedia.org/Main_Page https://ballotpedia.org/Arizona_2018_ballot_measures http://www.governing.com/topics/politics/gov-2018-ballot-measures- statewide.html Ref: Ch. 4 Pathological Politics

ECO 481: Public Choice Theory Introduction to Public Choice Dr. Dennis Foster