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10 - The Scope of Authority

Published online by Cambridge University Press:  23 October 2025

Randall G. Holcombe
Affiliation:
Florida State University
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Summary

The scope of authority of the political elite tends to expand because those in authority seek more power, and the masses often perceive problems and demand that those in power do something to address those problems. The demands of the masses are supported by the academic concept of market failure, which legitimizes the expansion of the elite’s scope of authority. Despite theories of market failure that are used to justify government action, most government programs do not correspond with the problems identified by economic theory. Interventions in response to the demands for government action often create additional unforeseen problems, which leads to more demands for government action. The result is that the scope of authority of the ruling class tends to continually expand as the political elite identify problems and the masses demand that the elite address those problems.

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