The Incentives Behind Our Perpetual Debt

It is no secret that the US Federal Government has great difficulty getting out of and staying out of debt. Whether the State even possesses the power or willpower to get out of debt is not even asked, as Keynesian principles have lionized debt and removed the historical stigma. Things that would not be seen as wise within the bounds of a family are actively supported in budgeting and monetary policy. The hypothesis that debt will usually create more wealth than the cost it creates in risk allows politicians to take the exact same path that they would have but further. Elected officials have a unique set of incentives that consistently drives them to take out debt for temporary present goods. They are rewarded for making the people happy, and withholding benefits while also increasing taxation are both very damaging to this goal. The ability to give out benefits with no associated increase in taxes makes debt necessary for those who wish to stay elected. Those who repeatedly sell the future of their country for short-term gain are those who will continue to be elected.

People elect politicians who promise short-term benefits, and reelect those who deliver them. Particularly in our urgent political climate, people are yearning for radical short-term solutions. Those who promise prosperity 100 or even 30 years into the future are given far less credence than those who blabber about the greatness of their own potential four years. In their voting patterns, people are recognizing a core truth that they have limited life to live, and would rather vote for progress now and flourish while they can still enjoy it. Although wishing a better life for oneself is understandable, it damages both self and posterity. The outcomes voted for rarely come to pass, and when they do, they are often at the expense of the Nation’s stability in the future. If the American People in 1996 had been intensely concerned with the good of Americans in 2026, many of our problems would have been diminished. However, unless something fundamental changes in the human psyche, the present will always greatly overpower the concerns of the future, however consistently the feedback loop punishes short-term gratification.…