Which of the following best explains the political attractiveness of debt financing relative to taxation?
A) Debt financing pushes the visible cost of government into the future.
B) Debt financing exposes the current costs of government programs; taxes do not.
C) Debt financing reduces the attractiveness of special-interest spending.
D) Taxes allow politicians to supply voters with immediate benefits without having to impose a visible cost.

Question

Quizplus · Accepted Answer

Debt financing allows politicians to spend money now without raising taxes and pushing the visible cost of government into the future. This can be politically attractive because voters are less likely to resist current spending if they don't see an immediate increase in taxes, even if it means higher costs or reduced benefits in the future.

Which of the Following Best Explains the Political Attractiveness of Debt