BETWEEN THE LINES: Shortsightedness costly in long run

Our human nature often leads us to make decisions that are favorable in the short run, but often end up being detrimental in the long run. Immediate gratification is a powerful force to deny. This "eat, drink and be merry" attitude that sounds so good in our youth, seldom produces beneficial results.

Focusing too much on the here and now, and failing to grasp the big picture, usually proves costly whether it is an individual, corporation or government entity making the decisions. It is the latter of those three that more likely will happen because the mistakes are transferred to taxpayers and not to those who made poor decisions.

Politicians are most prone to this malady because campaign promises generate votes, which in turn help put them in office. The day they are elected, these so-called public servants seek to win re-election by doling out subsidies and handing out goodies to various interest groups that support their candidacy. It is easy to pass out money when it is not yours to begin with, especially when the consequences will fall to a later generation of taxpayers.

French political economist Frederic Bastiat wrote a series of essays in the mid-19th century pointing out the fallacy of such short-term thinking, particularly that of government. One of these essays was titled "What is Seen, and What is Not Seen," in which the Frenchman points out the bad economist confines himself to the visible effect only while failing to account for the effects that must be foreseen.

He points out the immediate benefit is almost always favorable, while the later consequences are disastrous. The net result is a small present good will be followed by a great evil. Bastiat’s analysis should not be lightly dismissed, for as Nobel Laureate in economic science F.A. Hayek points out, his observations more than 100 years ago were considerably wiser than those of our generation.

The problem lies in that the cost of government initiatives takes the form of taxes, which in turn take away money that could have been spent elsewhere. Logic has been replaced by emotion, or faulty thinking. To say a national disaster such as a hurricane is going to generate economic growth by the rebuilding of destroyed property is malarkey.

What is seen is the new construction, workers actively engaged and cement trucks coming and going. What is not seen are the taxes that will be paid later to offset the cost. Had the natural disaster not occurred, the money that would have been spent on the rebuilding would be spent elsewhere to grow the economy, not taken out in the form of taxes.

Government solutions do not generate growth for they are a zero-sum game.  Wealth is not created, only redistributed by bureaucrats to their favored constituencies. Voters unfortunately only see the immediate impact of these government projects and fail to perceive the negative long-term effects.

What is clearly lost, as government extends its tentacles into ever-increasing endeavors, is the gradual loss of individual liberty.

Laughlin is a Christian Libertarian. He is an economist, teacher, father, husband and most recently a grandfather. He has written a weekly column for The Tribune for 12 years. He and his wife Gina reside in Meadowlakes. To contact him, email ablaughlin@nctv.com. He is an independent columnist, not a staff member, and his views do not necessarily reflect those of The Tribune or its parent company.