How does Buchanan's work relate to national debt?
My colleagues and I, particularly Richard Wagner in 'Democracy in Deficit,' argued that democratic processes, unconstrained by sound constitutional rules, create incentives for politicians to run deficits. The benefits of current spending are immediate and concentrated among voters, while the costs of debt repayment are deferred to future generations. This 'fiscal illusion' allows politicians to finance present consumption through borrowing, leading to an accumulation of national debt. We advocated for constitutional limits on government borrowing to address this inherent bias.
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