Investopedia

Continue to Site »

Pork-Barrel Politics

Filed Under » ,
Dictionary Says

Definition of 'Pork-Barrel Politics'

A slang term used when politicians or governments "unofficially" undertake projects that benefit a group of citizens in return for that group's support or campaign donations. This spending mostly benefits the needs of a small select group despite the fact that the entire community's funds are being used.

Also referred to as "patronage".
Investopedia Says

Investopedia explains 'Pork-Barrel Politics'

For example, let's say a city has a large number of potholes, spread evenly throughout its communities. If the mayor took campaign contributions from a group of wealthy residents in exchange for a promise to fix the potholes in their neighborhood first, this would be pork-barrel politics.

One possible derivation for the phrase comes from the practice of country stores keeping a barrel of salted pork open and available to the public. Certain high-ranking citizens would come by daily to dip into this common fund.

Articles Of Interest

  1.

    For Higher Stock Returns, Vote Republican Or Democrat?

    The president's political party is correlated to market performance. Find out which party tends to outperform.

  2. Broadening The Borders Of Your Portfolio

    Find out what type of international fund might suit your needs, in order to gain exposure to foreign markets.

  3. Why Country Funds Are So Risky

    High returns come at a price, but country funds may still be a good bet.

  4. What Is An Emerging Market Economy?

    Emerging markets provide new investment opportunities, but there are risks - both to residents and foreign investors.

  5. What is political risk and what can a multinational company do to minimize exposure?

    For multinational companies, political risk refers to the risk that a host country will make political decisions that will prove to have adverse effects on the multinational's profits and/or ...

  6. Economics Basics

    Learn economics principles such as the relationship of supply and demand, elasticity, utility, and more!

  7. Austerity: When The Government Tightens Its Belt

    When a government tightens its belt in tough economic times the entire nation feels the squeeze.

  8. Approved: Paying Online Sales Tax

    States will now be allowed to collect sales taxes on purchases made from Internet-based retailers even if the retailer has no physical presence in that state.

  9. Sequestration: What Will It Do And What Should You Do?

    Learn about the sequester, and possible ways to play it.

  10. Stocks That Follow This Simple Practice Beat The Markets 6-To-1

    We look at what makes Shaw Communications so special, and how you can find other smilarily special stocks.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Validation Period

    The amount of time necessary for the premium on an insurance policy to cover the commissions, the cost of investigation, medical exams and other expenses associated with the issuance of the policy.

  2. Winner's Curse

    Because of incomplete information, emotions or any other number of factors regarding the item being auctioned, bidders can have a difficult time determining the item's intrinsic value. As a result, the largest overestimation of an item's value ends up winning the auction.

  3. Glocalization

    A combination of the words "globalization" and "localization" used to describe a product or service that is developed and distributed globally, but is also fashioned to accommodate the user or consumer in a local market.

  4. Disaster Loss

    A special type of tax-deductible loss, similar to a casualty loss, where a loss has been incurred by taxpayers who reside in an area that has been designated as a federal disaster area by the President.

  5. Fool In The Shower

    The notion that changes or policies designed to alter the course of the economy should be done slowly, rather than all at once.

  6. Pattern Day Trader

    An SEC designation for traders who trade the same security four or more times per day (buys and sells) over a five-day period, and for whom same-day trades make up at least 6% of their activity for that period.
Trading Center