Remember, budgeted dollars in a government office are typically "use it or lose it." If you have money left at the end of the year, you have to spend it. Ergo:
Imagine if you ran your household budget like this. After topping up at the gas station, you'd have to hose a few extra gallons of gas on the sidewalk. And then you'd go to the grocery store and buy a few extra gallons of milk, even if they wouldn't fit in your fridge. And then you'd buy a few extra pair of shoes, just to keep under your bed.
Because there is no mechanism to save, ever, the incentives are the exact opposite of real life. The less you spend, the less you get to spend in the future. The more you spend, the more you're given to spend in the future.
And we wonder why government spending is out of control.
Comments