How does the median voter theory affect economics a macro level?

people i really need a good answer for this. i really need your help.

This really depends on your framework.

Assume a public good provided by government and paid for equally by all citizens. Everyone has some preference on the optimal level of the public good. The level of public good provided will equal the level desired by the median voter, because if less is provided a majority want more of the public good and if more is provided a majority want less of the public good.

Under this logic, things like government spending and tax rate are determined by median voters. Thus will have effects on the level of production (through tax distortions) along with distribution effects. Taxes could be largely determined by the level of inequality: if a small group people make significantly more income, the median man could benefit from high taxes, government spending and redistribution.

If this is for class, make sure you frame arguments in the context of models discussed in class. This is just a general outline of basic effects.

Noam Chomsky discussing Globalization and its effect on common people

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