Sometimes the current decisions we make today can affect the options that become available to us in the future time. For example, I may spend less money today in order to be able to spend more at a future point in time, such as during retirement. The name for this economic concept is “intertemporal choice.”
What we expect or desire to happen in the future can affect the choices we make now. While this concept may appear obvious, it can have significant implications when we apply it to certain groups, such as politicians.
Take, for instance, the problem of cronyism. Cronyism is a form of corruption that occurs when an individual or organization colludes with government officials to create legislation or regulations that give them forced benefits they could not have otherwise obtained voluntarily. But such cronyism doesn’t have to occur directly. Intertemporal choices, as economist Bryan Caplan explains, can lead to intertemporal corruption: