Why don't countries always issue multi-year multi-entry visas?

In many countries (e.g. the Schengen area) it is common for visa nationals to only receive a single entry visa for the exact duration of their trip. Supposedly it prevents the "bad guys" from overstaying and/or working undercover. However assuming one is planning to overstay, do they really care about the duration of the visa? Even if it's a single entry visa for a single day nothing stops them from throwing out their return ticket and disappearing inside the country.
So the question is - why not always issue convenient multi-entry multi-year visas to all verified travelers? Countries such as the US routinely do so despite being extremely paranoid, so it's not exactly unheard of.
Best Answer
Its a matter of risk, plain and simple.
The first time, you are an unknown entity thus, they limit what you may legally do. Of course, illegally you may do whatever you please.
On subsequent applications, given your good travel history (i.e. you obeyed the provisions of your visa) then you are given more leeway.
This happened to almost everyone I know, who traveled to the Schengen zone and needed a visa.
The first visa, extremely restricted - mine was single entry and for the exact duration of the trip. Second time, the visa was for 30 days. Third time, 60 days, multiple entry. The most recent application resulted in a one year visa, multiple entry.
A friend who had even more travel history than myself got a visa for the duration of his passport validity which was a good 5 years.
My colleague had a similar experience with the UK embassy; after a few successful trips he finally managed to apply for a 5 year visa.
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Answer 2
Maybe in case of Schengen area it's an attempt to make sure that the person actually spends time in the designated country? I.e. you could get a multi-year visa from e.g. Greece and then use it to travel to Germany all the time, without spending time in Greece after the first time. If you have to get a new visa for each trip, it will likely be to the country where you're getting the visa.
And then the opposite effect kicks in. Longer stay periods for recurrent visas. Travel to our country and get longer visas for the same amount of effort! Kind of a bonus program really.
Countries have to measure their desirability and their own desperation of getting more tourists. Too lax rules and tourists go to other places with "your" visa. Too strict rules, tourists don't come at all.
It shows that visas are used not only as means of security but also gamed to capture profit - and not by visitors this time but by participating countries.
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