Organized Interests. A definition from Naked Economics

Posted: February 28, 2009

Organized Interests definition: a group of people or an organization seeking or receiving special advantages, typically through political lobbying. Another term is special interest. Organized interests fuel a system that rewards self interested politicians who in turn cater to (the self interested) organized interest. The “economics of regulation” put simply is that the whole (large group) subsidizes the small group(s). You can read more to understand why in this Naked Economics chapter 8 summary.

Knowing the organized Interests definition is only a part of the story. All else equal, small, well organized groups are more successful in the political process. It is easier for the countless masses to pay a few extra cents in taxes to benefit a relative few. Those few are highly motivated to protect that benefit, whereas the general population is largely unaware. As a result, the democratic process will always favor small, well organized groups at the expense of large diffuse groups. You can read more about Organized interests in this Naked Economics chapter 8 summary.