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Joined 1 year ago
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Cake day: July 26th, 2023

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  • I really wish we could focus on the actual causes of high government spending instead of this or that tax rate.

    I tend to think it’s due to use it or lose it budgets. Same thing happens outside government too. You get a chunk of money to use, and if you don’t spend it all, you’ll probably get less next year. If you spend it all, you might be able to argue for more next year since you ran out.

    There’s little incentive for the groups doing the spending to save a lot of money, especially if they know they only take a tiny piece of the enormous pie. But it collectively causes that pie to have to be enormous.

    Is there any real world solution to this endemic behavioral incentives problem with some history of large scale long-term success? Naive solutions can easily backfire or lead to corruption. You don’t want to incentivize cutting so much that necessary spending is impacted either.