The Price of Political Change: A Cost-Benefit Framework for Policy Incentivization
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Abstract: What is the maximum cost to achieve any policy change through legal democratic channels? We estimate \$25 billion for the United States and \$200 billion globally. These figures represent the upper bound of matching all opposition spending (campaign finance, lobbying) and providing career alternatives for affected legislators. For high net-societal-value policies, even these maximum costs yield extraordinary returns: military-to-health reallocation achieves ROI exceeding 400,000:1, carbon pricing exceeds 1,000:1, and occupational licensing reform exceeds 2,000:1. The "political impossibility" objection thus reduces to a capital allocation problem. Political change is not impossible; it is merely expensive, and for valuable reforms, the price is trivial relative to the benefits.
Summary: What's the maximum cost to achieve any policy change through legal democratic channels? \$25B for the US, \$200B globally. For high-value reforms like military-to-health reallocation, this yields ROI exceeding 400,000:1.
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Subjects
- Political Economy
- Campaign Finance
- Lobbying
- Public Choice
- Cost-Benefit Analysis