I remember the moment I realized that cutting the federal budget would be impossible. I was in a budget discussion at the lowest level of government - the homeowners association. We had a two year surplus with no good ideas on what to do with it. The board wanted to put out a survey to the homeowners to see what projects they would like to see. I suggested we give at least half of the surplus back to the homeowners. 🤷‍♂️ Nobody supported the idea. In an uber red state, when the rubber meets the road, not even a homeowners association is capable of reducing spending.

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I wonder what the psychological hangup is with reducing spending and refunding money is. Also if it has been studied and the phenomenon given a name.

Would seem that absent competitive pressures, there is no outside source of incentives to cut back.