Rights-based budgets break tradeoffs

Updated: 2025.10.14 7D ago 5 sources
Chris Bayliss claims Britain’s fiscal regime is driven by legally enshrined rights that obligate spending regardless of tax–spend political bargaining. Obligations fall on central government, quasi‑sovereign bodies, and implicitly on a shrinking productive base, raising sustainability risks. — Treating welfare and services as sacrosanct rights shifts crisis risk from politics to law, forcing a rethink of entitlement design and insolvency rules.

Sources

Climate lunatics in Hamburg pass referendum committing Germany's leading industrial city to deindustrialise completely in 15 years
eugyppius 2025.10.14 65% relevant
A binding climate referendum that commits a city to hard emissions caps functions like a legal obligation with spending and policy consequences baked in, similar to rights‑style mandates that constrain normal political bargaining and force resource allocation regardless of economic tradeoffs.
Britain is Slowly Going Bust
msmash 2025.10.01 70% relevant
The article describes Labour reversing planned pension and welfare trims amid political outcry while debt and taxes hit records, echoing the thesis that entitlement‑like commitments crowd out fiscal bargaining and raise sustainability risk in Britain.
The polity that is Brazil
Tyler Cowen 2025.09.02 86% relevant
Brazil’s constitution reportedly mandates about 90% of federal spending, indexes pensions to wages, and ties health/education outlays to revenue—exactly the kind of legally enshrined obligations that remove normal tax–spend bargaining and drive structural fiscal pressure.
Chicago Is on the Verge of Fiscal Collapse
Austin Berg 2025.08.25 86% relevant
Illinois’s constitutional 'pension protection' clause locks in benefits regardless of fiscal reality, and the article argues Chapter 9 bankruptcy could federally preempt that constraint—an exact case of legally enshrined obligations overriding budget tradeoffs.
July Diary
Ben Sixsmith 2025.07.31 100% relevant
Bayliss excerpt: 'a legal settlement that obliges certain needs to be met... rather than under the normal tax vs spend trade-off... what happens when we run out of those people?'
← Back to All Ideas