Final answer:
Elected officials may inadvertently prolong political business cycles when using fiscal policy to boost reelection chances. Time lags between policy implementation and actual economic conditions can lead to exacerbated rather than smoothed economic cycles. The desire for immediate results conflicts with the economist's understanding of inevitable lags in fiscal policy's effects.
Step-by-step explanation:
Elected officials sometimes cause longer political business cycles in their attempts, through fiscal policy actions, to increase their chances of reelection. The fact that it can take many months or even more than a year to implement an expansionary fiscal policy after a recession has started creates a significant time lag. This delay can result in a misalignment between the intended effects of the policy and the actual needs of the economy at the time the policy takes effect. George P. Schultz, an economist and former Secretary of the Treasury, noted that while economists understand the concept of lags, politicians often seek immediate results, which can lead to tension and suboptimal economic outcomes.
The dangers of using fiscal policy as a tool for political purposes also include the risk of exacerbating economic cycles rather than dampening them. For example, active fiscal policy might stimulate the economy when it's already in the recovery phase, or contract it further during a downturn. Consequently, policy driven by political motives rather than economic necessity can have long-lasting and potentially harmful effects on the economy's natural business cycles.