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There are systemic reasons why democratic governments frequently behave foolishly: Politicians' constant incentive is to confer current benefits on targeted beneficiaries and to defer costs (by running deficits).
You'll also want to explore creative financing options to defer costs.
Most scholars believe that courts should enforce government contracts, though they disagree about the extent to which liability or damages rules should trade off relevant considerations – the problem of governments holding up contractors, on the one hand, and the problem of governments using contracts in order to defer costs to future governments, on the other hand.
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It is human nature to defer cost and prefer short-term gain over longterm value.
Mr. Koeppe estimated that his company's losses, known as deferred costs, would be in the neighborhood of $100 million.
Jeff Dennard, a spokesman for GPU, said the company had sustained about $319 million in deferred costs by the end of May.
The technology services company said it wrote down $559 million in deferred costs on a contract to build a communications network for the Navy and Marine Corps.
By making borrowing, and hence deficits, cheap, ZIRP facilitates the political class's bipartisan strategy of delivering current benefits while deferring costs.
John C. Liu, the city comptroller, commended the mayor for avoiding layoffs but cautioned that "the use of short-term financial maneuvers doesn't reduce real cost but simply defers costs to future administrations".
Boeing has sold only two of the jumbo jets in the last two years, and had acknowledged in SEC filings that sales would not be sufficient to recoup the deferred costs.
By deferring costs into the future, as Darling warned, he was able to sustain his reputation as an iron chancellor, while suppressing the constant baying of the corporate press.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com