“The PTC was created in 1992 to get the wind industry off the ground. Yet 20 years later, we have little to show for it.”
When it comes to rent-seeking by business, Concentrated Benefits + Diffused Costs = Government Growth.
In “Regulatory Failure by the Numbers,” a simple hypothetical was given:
“While the benefits of a regulation may be enjoyed by a relative few, the costs are often spread out among many. If the per person cost of a regulation is only a dollar or two, no one has a financial incentive to travel to Washington to lobby against it.”
Economists in the 19th century understood the problem created by this incentive asymmetry, and Michael Giberson found this in a 1935 book explaining the passage of the Smoot-Hawley Tariff: