Question

N presidential campaigns, candidates always seem to make more promises than they can fulfill: more and better health care; a better environment; only minor reductions in defense; better education; better roads, bridges, sewer systems, and water systems; and so on. What economic concept2 are ignored by the candidates?

Use economics and additional research to discuss this issue and explain these ideas.

Answer 1

I think these promises tend not to be fulfilled because of SCARCITY.

More and better healthcare, a better environment, minor reductions in defense, better education, better roads, bridges, sewer system, and water systems. All these needs to be fulfilled using vast resources - financial and human resources.

However, the government financial capacity is limited since it can't produce money at will without jeopardizing the economy as a whole.

Scarcity is an economic concept wherein the world has a limited means to satisfy unlimited needs. Thus, choices must be made. Promises will be fulfilled at the cost of the fulfillment of other promises.