Part 4/9:
The Iron Triangle of Politics
Friedman analyzed the political obstacles to cutting government expenditure and coined the concept of the "iron triangle." This triangle consists of three points: the politicians who enact policies, the bureaucrats who execute those policies, and the interest groups that benefit from government programs.
Each corner reinforces the other, maintaining the status quo. Interest groups wield power because they are organized and benefitting directly from government expenditure, while the costs are often dispersed and invisible to the general public. This dynamic inherently disadvantages ordinary taxpayers who may not notice their share of government spending—$5 here, $10 there—prompting little to no resistance when taxes are levied.