The government's subsidized loan program used with Angora goat farmers today

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The government's subsidized loan program for Angora goat farmers, which began in the 1940s, has continued due to various economic and political phenomena: it has outlived its original purpose, illustrating the "special-interest effect" where specific groups benefit from such policies. It also showcases the "principal-agent problem," where government officials (agents) may not always act in the best interest of the public (principals). Additionally, it's difficult to terminate because the benefits are concentrated among a small group (the goat farmers), while the costs are spread out across many taxpayers, a classic example of the "concentrated benefit and diffuse costs" problem.

The Government's Subsidized Loan Program Used with Angora Goat Farmers