Lawmakers Prioritize Local Interests Over National Welfare, Causing Inefficient Spending
Local public goods funded by national taxes benefit specific areas but spread costs across the country. This study looked at how US Congress members voted on transportation projects in 1998. The results show that legislators tend to support projects that benefit their own districts but are less likely to support projects with high overall costs. This means that some districts may receive more funding than needed, leading to wasteful spending and economic losses.