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Government intervention in the health care market

Compare and contrast the public interest and special interest theories that describe the motivation behind government intervention in the health care market

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Special interest groups are powerful coalitions formed by firms or professionals with similar political goals. For example, the pharmaceutical companies are rivals economically, but politically they want the same things. So they created the special interest group PhRMA to protect their profits. Special interests are powerful because they are wealthy. With deep pockets they can influence elections through advertising and by contributing to political campaigns. The profits that they protect are funneled back into these political activities, making them more powerful.

The public interest motivation behind legislation is the desire to solve a social problem. In theory, that is what a representative government should do: pass legislation which improves public ...

Solution Summary

Comparison of special interest and public interest theories as they relate to government intervention in health care.