Responds to artical Essay Example | Topics and Well Written Essays - 500 words

Responds to artical - Essay Example It is such coalitions that make politicians to support the two groups that are for and against regulating the sale of alcohol on Sundays (Bruce 12). This is an indication that different groups advocate to business regulations for personal benefits. The rent seeking behavior is a common economic theory and practices that impact differently on players. Usually, it is aimed at achieving persona gains at the expense of others. This is behavior is evidenced in a number of ways. For instance, a number of regulations passed by relevant authorities affect the population differently. A perfect example is the case of taxation policies, which may favor or disfavor a section of the population. Progressive tax policy (which is a rent seeking scheme) is favored by the low and medium income earners. However, high income earners are opposed to this tax proposal. Such differences regarding ‘collective mechanisms’ can be explained using the symmetry and asymmetry arguments. While a section value collective mechanisms, others opposed to it advocate for individual liberty, leading to disagreements on the best arrangements that suits all groups. Such conflicts are asymmetrical in nature. Therefore, in order to realize a collective mechanism, the interests of those opposed to it must be sacrificed, hence asymmetrical. A reality that we all have to live with is the fact that our governments are in debt crisis that has been on the rise over the last decades. It is therefore important to understand the facts behind government expenditures. The first thing to note is the fact that government expenditures exceed tax revenue collected from different bases. This is an indication that the revenues generated are insufficient to fully finance government operations. Therefore, governments are ever in deficit. To finance their deficits, they have no choice but to borrow either internally or externally. It is fact that tax payers have to