In United States politics, the iron triangle is a term used by political scientists to describe the policy-making relationship between the legislature, the bureaucracy (executive) (sometimes called "Government Agencies"), and interest groups.
In the Federal government of the United States, the congressional committees responsible for oversight along with the federal agencies (often independent agencies) responsible for regulation of those industries, and the industries and their trade associations. One of the earliest formulations of the "iron triangle" concept was by political scientist Grant McConnell, in Private Power and American Democracy (1966).
An often-used example of the term is with reference to the military-industrial complex, with Congress (and the House and Senate Committees on Armed Services), defense contractors, and the U.S. Department of Defense forming the iron triangle. The term iron triangle has been widely used by political scientists outside the United States and is today an accepted term in the field.
Much of what some see as bureaucratic dysfunction may be attributable to the alliances formed between the agency and its constituency. The official goals of an agency may appear to be thwarted or ignored altogether at the expense of the citizenry it is designed to serve.
Often, especially in a low-level bureaucracy, the consumers (the supposed beneficiaries of an agency's services) do not qualify as power brokers and thus make poor constituents. Large segments of the public have diffuse interests, seldom vote, may be rarely or poorly organized and difficult to mobilize, and are often lacking in resources or financial muscle. Less-educated and poorer citizens, for example, typically make the worst constituents from an agency's perspective.
Private or special interest groups, on the other hand, possess considerable power as they tend to be well-organized, have plenty of resources, are easily mobilized, and are extremely active in political affairs (through voting, campaign contributions, and lobbying).
Thus it may be in an agency's best interest to switch its focus from its officially-designated consumers to a carefully-selected clientele of constituents that will aid the agency in its quest for greater political influence.
At one corner of the triangle are interest groups (constituencies). These are the powerful interests groups that influence Congressional votes in their favor and can guarantee the re-election of a member of Congress in return for supporting their programs. At another corner sit members of Congress who also seek to align themselves with a constituency for political and electoral support. These congressional members support legislation that advances the interest group's agenda. Occupying the third corner of the triangle are bureaucrats, who are often pressured by the same powerful interest groups their agency is designated to regulate. The result is a three-way, stable alliance that is sometimes called a subgovernment because of its durability, impregnability, and power to determine policy.
Consumers are often left out in the cold by this arrangement. An iron triangle can result in the passing of very narrow, pork-barrel policies that benefit a small segment of the population. The interests of the agency's constituency (the interest groups) are met, while the needs of consumers (which may be the general public) are passed over. That public administration may result in benefiting a small segment of the public in this way may be viewed as problematic for the popular concept of democracy if the general welfare of all citizens is sacrificed for very specific interests. This is especially so if the legislation passed neglects or reverses the original purpose for which the agency was established. Some maintain that such arrangements are consonant with (and are natural outgrowths of) the democratic process, since they frequently involve a majority block of voters implementing their will through their representatives in government.
The TVA faced strong opposition early on, most notably from private-sector utility companies. By the mid- to late-1940s the TVA had reason to be concerned about its political survival. In order to secure political support and strengthen its position, the agency established ties with large agricultural interests who exerted significant influence over Southern representatives in Congress. The alliance worked to the benefit of the TVA's new constituency, while many poor farmers (particularly blacks) who might have benefited most from the goods and services of the TVA were ignored.