The Lure Of Other People's Money (Steven Greenhut On California's Credit Card Profligacy Alert)

Orange County Register ^ | 07/15/2007 | Steven Greenhut

[goldstategop]

Watching how my kids spend money, I'm constantly reminded of something rather obvious, but still instructive: They are far less profligate with their own cash than they are with mine. What's 40 bucks for a concert if it comes right out of Dad's wallet? But that same concert is far less of a must-see event if they've got to spring for it out of their own piggy banks. My kids would explain this economic principle with one word: "Duh."

People are much more careful with their own resources than with others' resources or with those resources that are publicly owned. Nevertheless, the general public, and politicians in particular, forget how this lesson applies to everyday life. Is it surprising that health care costs keep going up the more that people rely on third parties to pay for the bills? When someone else pays, we become far less concerned about what such a service might cost.

The Other People's Money syndrome is even more pronounced when it comes to government officials spending cash out of the vast pool of taxpayer-funded resources. Politicians have no disincentive to spending OPM. They buy votes from various well-organized constituencies (e.g., public-sector unions, farmers, benefit-seeking corporations, transit riders). H.L. Mencken said that every election is "an advance auction of stolen goods." And so government gets bigger and more free-wheeling in its spending. We've reached the point where even wastes of hundreds of millions of dollars induce more shrugs than outrage.

[goldstategop]

Other People's Money = shorthand for charging it to the credit card. Buy now and pay later. In California, both politicians and voters have charged, charged, charged. Call it Credit Card Profligacy.

"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus

[silverleaf]

Good read- love the Mencken quote!

[SierraWasp]

So what? Nobody is doing anything about any of it and you bugged out of CA!!! BFD!!!