The meaning of "All Politics is Local"

ILLUSTRATED: "All Politics is Local" refers to the motivations of politicians, not voters.
That phrase is the most misunderstood and misused phrase in politics. Tip O’Neill, the former Speaker of the House, coined the phrase. “Politics” refers to the concerns of the elected officials, not the concerns of the voters. The principle is that the thinking and actions people in power are generally limited to the interests of their power base. That can refer to legislators who represent different districts as well as to office politics among the various department heads in a company.
Many have bastardized the phrase to mean that voters only vote on local issues. Some do, others vote on Iraq or Vietnam.