What's going on?

Some guy was trying to get into the building when we said no. He started tearing his clothes off.

Sir....sir, I'm one of your constituents

and I wanted to talk to you about some things. I can come back if this is a bad time.

Nobody can hear you.

Well, I realized that I'm not a median voter technically, but I thought you would still want to talk.

Nobody cares about you.

Well, that's a little harsh.

Nothing will come of this.

I get it. Political incentives don't always align with the public good.

Why don't you let these nice gentlemen take you home.

Actually, I live just a few blocks from here. I can totally walk home if they untie me.

Or not. I'll see you at the town hall meeting.

Goodnight!

Hello I'm Andrew Heaton and you are watching

EconPop -- the show that lifts the lid on popular culture to rummage through the

festering economic refuse within. Welcome! Today we're going to be discussing the Golden

Globe-winning Netflix original series House of Cards

Take steps back look at the bigger picture

I think I see what you are getting at.

That's how you devour a whale, Doug. One bite at a time.

Next time you wanna feel powerful drink three fingers of scotch and watch House of Cards.

it's like injecting Machiavelli directly in your femoral artery.

It's a show about Frank Underwood a nefarious congressman

and is machinations and scheme to grab more and more power

know I've never been a congressman although I did accept campaign

contributions from Jack Abramoff in 1996

and did some jail time for it however I did work for congress for a little while

so I've actually been there are not politicians which makes me want to talk

to you about public choice theory

public choice theory is basically the idea that politicians stay human

even after they've been elected you don't magically become a selfless robot

once you're sworn in

you still have once and needs just like everybody else

some good some bad when people talk about the government they are not talking

about a big monolithic entity

it's a collection of people and each of those people is making their own

decisions

for their own reasons in House of Cards, the decision which base to close or where to

put a project

is not driven by what's actually the best idea. It's decided by horse trading.

I can't do that.

Yes you can, Peter.

I put months on that testimony. I lobbied the commission... my entire office.

I'm sure you've done splendid work but unfortunately it can't come to fruition.

Why?

Politics... this force is bigger than either of us at play here.

It's 12,000 jobs.

I know it's a shame.

Now most congressmen are actually pretty good people. They love their families and

deeply care about their districts.

Which leads them to fight for as much money as they can send home.

If a congressman is the son of Iowa corn farmers

and his friends are all corn farmers and for some reason is married to a corn

field or something,

he thinks he's doing a good thing just by getting corn subsidies.

so far this is all at least well-intentioned there's been no

corruption

but he magnify the start process by every member of the Senate and every

member of the House

there's a lot of money being spent and yet most people don't care.

this is because a concentrated benefits and dispersed costs.

If I'm a corn farmer, ten million dollars in subsidies is a big deal to me.

Enough to pay a lobbyist to go to Washington on my behalf. But spread out

over three hundred million Americans,

that subsidy is just a few cents. Nobody cares. But you add up

all those cents, pretty soon you've got billions of dollars

all taken out your wallet funneled through washington and put in somebody

else's pocket

Blendon Hill fronts SanCorp industries. SanCorp is deep into natural gas.

I don't give a hoot about natural gas but I have 67 deputy whips and they all need

cash to win races. SanCorp helps me pressure loyalty in return they expect

mine which is degrading, I know.

When the tits that big, everybody gets in line.

This is all reinforced by an interesting paradox -- people hate congress but they left their congressmen.

If Frank Underwood is my representative he's bringing my tax dollars back to my district.

He's putting money towards projects that benefit my community whether that means

hot air balloon researcher teaching dolphin sign language or whatever

but every other congressman is just pork barrel spending

miserable crooks. Now, the corn farming congressman I mentioned earlier

we're still talking about someone who is at least in their mind

doing right by their constituents. We need to remember that congressman

just like anyone else have their own personal interests

like getting reelected which means they have an incentive to support laws based

on their reelection campaign

not on the general good. This can lead to corruption and swapping

favors for campaign contributions. Frank gets Linda her influential White House position,

knowing that it will benefit him later.

Sometimes you get people who are downright evil like Frank Underwood

Are you try to turn this around on me?

That's not all, Lorn. Your easement. You see, every couple years the Piedmont Electric

they apply to bring power lines together

their route comes right through your lot. Now, Gene and I always buy 'em off but this year

if they were to reapply

hmmm.. imminent domain. Be such a shame to have to tear down this beautiful home.

They're just in it for raw unbridled power like Senator Palpatine in Star Wars

And chilling as that thought is, it's also predicated on the idea that politicians

well-intentioned or evil are all competent which is a big leap of faith

we might draw the conclusion that a friend were better person. the

government would be better

Frank could become devoutly spiritual or listen to Tony Robbins nonstop

but even as a good person he'd still be shuttling subsidies back to his district

just like all the other congressmen. Ultimately, every politician desires to

get reelected.

And that covers every law that's passed and every tax dollar that's spent

will I be subject to public choice theory if I were a congressman?

Well you might very well think that but I couldn't possibly comment.

And now it's time for everyone's favorite part of the show

Subjective Value

Where we invite famous economists to give us their two cents.

today we're talking to James M. Buchanan

that's right The James M Buchanan

Hello, thank you for offering me this platform.

I hope you don't mind I invited a few members of the press.

I would just like to say that I am not James Buchanan, Jr.

the15th President of the United States

I was not born in a log cabin in Cove Gap, Pennsylvania.

I did not push for congressional approval of Kansas statehood

under the Wyandotte Constitution.

I was, however, an active Free Mason.

The Sun always rises in the east Brother Andrew.

Six Stars

Well, that's our show thanks for watching be sure to subscribe to our YouTube Channel.

if you're looking for more information about public choice theory and the

economics House of Cards,

you can download the EconPop podcast on iTunes

with Steve Horowitz, Paul Cantor, and myself.

See you next time!