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more acute for officials with shorter terms, such as those in the House of
Representatives because they have less time between elections; and therefore, less
time between exposure to unhappy voters resulting from increased taxes and
project delays.
If these term limits were shortened it is most likely that this would have an
increased negative effect on governmental will to address eroding infrastructure
than is currently the case. This is because officials would be subjected to more
pressure to keep their voter base pleased by avoiding the taxes and inconveniences
that result from long-term construction projects. On the other hand, if officials were
given longer terms they would be less effected, politically, by the decision to plan
long-term infrastructure projects. Longer terms provide the incentive to commit to
the long term projects.
Explain the difference between the incentive of the owner of a house and
a renter of a house to undertake expenditures designed to improve or
maintain the house. For example, are renters more likely to replace light
bulbs or wall-to-wall carpets when they wear out? When renters spend
funds on a new bookcase, is it likely to be built-in or portable? What are
the parallels between incentives here and the incentives of Congress
when it comes to current expenditure versus capital expenditure?
Incentives for owners versus renter incentives are very different when it comes to
undertaking expenditures designed to maintain or improve a home. Owners are
more likely to invest in long term maintenance and improvements. Renters are more
likely to invest in short term maintenance and improvements. Owners are more
likely to undertake long term investments in maintenance and improvements
because it directly improves the value of their investment and the use or improved
use of the house/ investment. Renters are unlikely to undertake long term
investments in maintenance and improvements because they do not benefit long
term from this maintenance and improvement, although they do benefit directly.
The latter scenario shares parallels with Congress in terms of capital expenditure.
Congress, as elected officials, act as renters of a house, opposed to owners. They
are averse to long term investment in capital projects, such as bridge repair and
maintenance. This is due to the short-terms within office and the need to satisfy
voters leading up to the next election cycle. These facts create incentives to avoid
long term investment in infrastructures, as is the case with renters.