The park in Hammerhead, Florida, built to honor the city's founding father, General Hammerhead, is starting to deteriorate. It would take about $5,000 to restore the General's statue, repair the benches, and repair the fountain, but the city budget is
tight. Also, the deterioration is not that noticeable. Mayor Grouper suggests delaying the repair until after the election, three years away. City Councilwoman Halibut notes that by then the park will be dilapidated, and repairs will cost $25,000 . From a public choice perspective, what is the likely outcome of this debate?
The shortsightedness effect would suggest the repairs will be delayed. It would not be rational politically to expend scarce resources (city government money) on a project few people would notice. If this created a budget deficit, it would also be politically risky for the incumbents at election time. On the other hand, waiting for the park to become obviously shabby would create an outcry for repair, and the significant expenditure of $25,000 would demonstrate elected officials' willingness to meet constituent demand.
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