The Government's Preference for Deficit Spending

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Deficit spending generates the creation of wealth transfers from future taxpayers to future government shareholders. In the near future our children and future generations will have a portion of their personal earned incomes moved through higher tax rates compared to those who carry Treasury notes. Government debt causes our children to loose more rights and freedom. Deficit spending is very underhanded because it causes people o believe they are gaining something for nothing. In actuality, their personal wealth is reduced and gives the illusion that their money was covered by taxation. Information involving the overall cost is not even stated in the tax bill itself. Politicians tend to support deficit spending because it rewards special-interest groups and enlarges the state’s control of its private sector (Gwartney et al. 110). Without proper laws and restraints, legislators will drive up budget deficits and spend funds excessively (Gwartney et al. 110). When the government’s allocation of money exceeds its total revenue, a budget deficit occurs. The political attractiveness of spending finances by borrowing rather than taxation is not astonishing. Legislators tend to focus on the short term effect rather than the long term results. The attractiveness reflects what economists view as the “shortsightedness effect.” The shortsightedness effect is the tendency of elected political officials to favor projects that generate visible benefits at the expense of costs that can
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