It seems like the public sector and a large part of the private sector would rather get paid more now at the cost of long-run national bankruptcy, than to get paid a bit less now and allow their country to remain solvent. Does anyone know why this is? It seems a strange policy to follow, since it makes the public far worse off in the long-run. It reminds me a bit of the 1930s, where the public preferred to have weak armies and risk conquest by the Nazis in a few years, rather than spend a bit more so they would be easily able to defend themselves against the inevitable. Is there any logical reason for this kind of near-suicidal behaviour?
Relevant question. It's probably the same reason the "public" allows it's leaders to fight baseless resource wars funded via deficit spending. The answer probably lies in the fact that the "public" is more interested in topics related to God, Gays and Guns than it is in its own financial welfare. The effects of intravenous drips of organized religion gone wrong. Why bother to educate the "public". Much better to side with the elites and allow the "public" to the bear the cost of procuring the resources.
Simple. Avg persons sense of history begins with their birth and their future ends with their death. Go back not even 50 years ago. Go back 100 years. What did and did not exist? Not many people really care. Solvency is a bankers problem. Not theirs And now you're going to ask some Gen X, Y, Z to give up their cell phone and work at work? Some Greek to give up their per diem? Some 50 yo "retired" police officer/firefighter to give up 90% of their salary to do nothing for the rest of their life? Some able bodied bum to not take his welfare check? Some 64 yo to mute his voice when the pyramid scheme that is Social Security raises the age to collect @ 70 instead of 65? Some politician to have the guts and address ANY of these issues AND think they will be re-elected to a 2nd term if they do? Not going to happen. No appreciation for pain and sacrifice. Until there is a forced appreciation. In the meantime... Let the good times roll. The only good thing is this nonsense is about to end. Unfortunately it will end badly for the majority.
It's also because a large part of the population own a home with a large mortgage. For them high inflation and low interest rates provide ideal environment to pay out the loan. The fact that the income grows ever so slightly slower than the rate of inflation must feel like a small price to pay. Many might not even notice this as the lag between income growth and inflation is compensated for them by moving up the paygrade.
The Fed policy of hyphenated Americans has trickled down to translate into zero civic responsibilty to the whole.
Because most people don't want to spend the effort to think about something. From buying lotto tickets with practically zero chance of winning to failing for even the most basic Nigerian Oil swindle, people disengage their brains when they think they can make some money. There's a been a bunch of scams (for years now) being advertised as "Work From Home". You get stuff (watches, electronics, etc) sent to your house, and you repack it and send it overseas, and they pay you a pretty nice wage. 10 seconds of thought should be enough for anybody to say "uhm, there's something wrong here." Yet people are closing their eyes and leaping on board by the score. A generation or two ago, TANSTAAFL was common sense and well understood by just about everyone. It's even an internet acronym, for crying out loud. It was an easily remembered shortcut - if somebody is offering you something too good to be true, then (most likely) they are trying to cheat you. Yet today, most people do not know how to apply it. In prior generations, this was a lesson that was beaten into your head time and time again until you learned it well. In today's world of freedom (from reality and responsibility), people are not exposed to this as much, they do not make the mistakes and suffer the consequences so they do not learn TANSTAAFL. You get scammed as a little kid and it's a lot like getting immunized against Madoffs so you do not get scammed when you grow up. Ultimately, it's time we learn TANSTAAFL all over again. It'll be a painful process.