Public choice analysis helps us to understand why deficits seem inevitable, since the current working generation always pays the full costs of government programs today.

Question

Quizplus · Accepted Answer

Public choice analysis suggests that deficits occur because politicians, who are focused on short-term gains and re-election, often favor policies that provide immediate benefits to voters or special interest groups at the expense of long-term fiscal responsibility. This means future generations, not the current working generation, often bear the costs through accumulated debt.

Public Choice Analysis Helps Us to Understand Why Deficits Seem