Friday, August 13, 2010

The Government's "Credit Card"

Credit cards are dangerous.  Not just because of the personal debt they can help create, but because of the change in spending habits.  Statistically, you buy more and spend more when you charge because the purchases cause less "pain" than cash or debit purchases would cause.  Basically, it's easier to spend money when you know you won't have to actually pay for it until later.  This fact is not only accurate, but also intuitive.

But can it work the same way for governments?