Those who benefit most directly by subsidies, tariffs or protective legislation have strong incentives to be politically organized, while the much larger group who share the costs tend to be less vocal. Government officials pay most attention to those who are paying attention to them. As more of what a people receive comes to them through government and less through their individual labors, this has predictable effects on their productivity. More resources are devoted to plunder and less to production. Living standards grow more slowly, or even decline.
Poverty becomes entrenched.
International comparisons cited in the Gwartney and Stroup book show that a nation's economic progress is generally inversely related to the size and scope of its government 16 . For debaters and extempers the lesson here is clear. Be wary of proposals to expand the aspects of our economic lives over which politics has control. In the free market, by contrast, resources tend to flow to where they are most valuably employed in satisfying consumers. Whereas market competition tends to increase wealth by expanding the range of opportunities available, political competition tends to consume wealth by diverting resources into organized legal plunder.