On 12-7-2009 18:09, Darren New wrote:
> John VanSickle wrote:
>> Darren New wrote:
>>> http://news.bbc.co.uk/2/hi/business/380923.stm?
>>
>> The basic problems with the economy are multifold:
> 
> 
> Sure. I just meant the *primary* problem with government spending is 
> that it's always "We'll spend like hell for 5 years, *then* make it 
> up."  I've never heard of a president with a four-year plan for 
> anything. It's always a five-year plan for something, with the fifth 
> year heavily loaded to make up for four years of making things worse.
> 
Re-election is also an issue. Especially in your last year in government 
you have to spend a lot to give people the feeling that it is getting 
better because of your actions. At least that is how it works here. I 
seldom see a initial 4 year spending. We have a 4 year cycle. After 
change of government the first year a couple of things that were 
promised will be implemented so people see the change with the former 
government. Then follows a period of reduction in spending. That last 
into the third year. The fourth year is a 'surprising' good one and 
various thing that are important to the ruling parties can be 
implemented. After re-election things turn out to be not as good as 
'expected'. If not re-elected goto the first step.

If you have a five year plan, either the next government has to deal 
with it or you will have an 'unexpected' bad year, so you can't make up.

Whatever the exact implementation, if you have a democracy, it seldom 
pays to think ahead for more than a political cycle. Unless the voters 
demand that you do so, which I don't see happening in the US that often.

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