Governments in democracies may resort to unnecessary borrowing and high tariffs due to short-term political pressures, such as the need to finance popular programs or protect domestic industries. Politicians often prioritize immediate voter concerns over long-term economic consequences, fearing that unpopular decisions might cost them electoral support. Additionally, lobbying from special interest groups can influence policy decisions that favor specific sectors at the expense of broader economic health. Ultimately, these policies may be seen as necessary compromises to balance competing interests and maintain political stability.
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