Question

8. The shortsightedness effect Which of the following are examples of the shortsightedness effect? Check all that apply. During the last 45 years, the U.S. federal budget has been in deficit (annual tax revenue fell short of annual government spending) 40 times. In 40 of the past 45 years, the legislators that set the federal budget opted to incur future debts in order to finance current spending. In order to get the necessary votes for a bill to pass, a legislator agrees to vote in favor of another bill in the future. o As of 2010, the U.S. government's Social Security program faced massive unfunded liabilities. That is, the government has promised benefits to future retirees without levying nearly enough in taxes to actually pay out the benefits.

Answer 1

Here options 1 and 3 are the examples.This is because in both the cases current benefits (proposals beneficial for the vote bank )were funded with future costs which are also difficult to pinpoint.