Why is it so much easier to spend other people’s moeny?
I asked if there was an economic explanation for this in response to a post at Anti-Dismal and got these answers:
From Mark Hubbard:
. . . because ‘you’ don’t work for other people’s money, thus, it has no real value according to ‘your’ own terms of reference 🙂
On the political level, because they’re so used to this big pot of money they can use for their own whim, and State theft is simply taken for granted by them as of right. If this recession/depression has one good result, it will be to utterly starve the bureaucracies of my money.
Unfortunately, what will actually come to pass is Hayek’s Serfdom principle, and ironically out of all this State caused chaos, the State will get even more control over my life and wallet.
But I’m not an economist.
And from Paul Walker:
I think the simple answer is when spending other peoples money you get the upside, ie the things you buy, without the downside of having to actually pay for them. Its a win-win for you, just not so good for those who have to pay for what you buy. Mark is right in that when its other peoples money you don’t value it the same way as you value your own, its just there, to be spent and at no cost to you.
That explains why Labour spent so freely in the last nine years – they weren’t spending their own money, they were spending ours and didn’t value it.