Cost vs. Benefit – Adopting Reality
Political satirist H. L. Mencken said, “The whole aim of practical politics is to keep the populace alarmed and hence clamorous to be led to safety – by menacing it with an endless series of hobgoblins, all of them imaginary.”
I would add the best time to scare people, to be wrong and persist in being wrong is when the costs of being wrong are borne by others.
So what does that have to do with cost-benefit analysis? Answer: Everything when it comes to government and politics.
One of the first lessons in an economics class is every action has a cost. That is in stark contrast to lessons in the political arena where politicians virtually ignore cost and talk about benefits and free stuff. If we look only at the benefits of an action, policy or program, then we supposedly will do anything to get or employ that action, policy or program.
But it’s stupid to consider only one side of an issue. We all know simple cost/benefit analysis. It’s part of our daily lives.
When we make decisions on whether to do or not do something, we weigh the “cost” of a decision we could make against doing something else – or nothing (at least most of us do).
Most often those decisions involve money. Can I afford to do this or buy this or that? If I buy this, what will I not be able to buy/do later?
Unfortunately those cost/benefit decisions we make do not universally carry over to the governmental – and certainly not the political arena.
There is no argument worth its salt that cost/benefit is seriously considered in the governmental/political morass. In the last 25 years our federal politicos have “benefited” the country by incurring a massive debt – costs over benefits, mind you – that now totals $104,205 for every man, woman and child in the population (as of August 8, 2024). And your and my debt is growing with every breath we take.
Now comes another general election. All members of the House, one-third of the Senate, and the Presidency are on the ballots for federal office.
I don’t care which Party. Which candidates are selling more of the same snake oil – er, “benefits” without giving you any idea of the costs? Why do they do that? Because those candidates could care less about costs when recent history shows that touting benefits are what it takes to get elected. And getting elected means pay (and other income), perks and power.
Let’s do an about face and elect people who know about the everyday cost-benefit decisions we all make and apply that common sense to the next federal budget appropriations.
It’s time to allow the plethora of federal bureaucrats to find a job where they can be productive and not cost you and me – not only for their generous salaries, benefits and retirement costs but the costs they render on us with unneeded, sometimes superfluous regulations.
If you read me last week you know how I feel about candidate Harris’ ‘economic plan.’ Let’s just say here that plan has multiple additional benefits but no consideration of the costs thereof.
You know, one of the things that seems so easy for our federal reps is spending money. Many times, they act like it’s theirs to spend however they choose.
We want to assume our representatives are going to use plain, old-fashioned common sense when spending money from the government coffers and treat decisions on expenditures with some analysis of cost and benefit. What’s it worth to his/her constituents? And don’t tell us a one-sided story – and be aware of the cost before voting to run up any (more) debt on us!
Oh, trust me, I know everything is not simply about money. Clean air and water are benefits that can come with tolerable cost. National security is not just having a strong military with voluntary manpower, support and technology, but other things like border patrol and the FBI and Homeland Security keeping tabs on potential domestic and immigrant terrorists and drug cartels.
Foreign relations should also pass the test of the value in cost, comfort and confidence – and not a straight line between benefit and cost.
Crime is another element that requires a cost to keep under control beyond the size of the law enforcement component. Policing needs coupling with the willingness and commitment of prosecutors to make penalties commensurate with the crime and to keep criminals off the streets as long as possible.
This isn’t complicated, folks.
There’s no advanced math or any rocket science involved.
Simple questions like “How much is the maximum this action could/will cost the taxpayer – the people who elected me – and can I justify the cost to them?”
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Have a great and prosperous week.
Hug somebody.
References:
SPIDER Bytes
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