Quote:
Originally Posted by Fieldmouse
They just recycle their excuses.
Yesterday's WSJ had an excellent econ101 overview of how Obama's out of control spending has not only driven us into the ditch but is keeping us stuck there. Il look for it but bottom line, government does a very poor job at spending money for the best ROI.
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I imagine an economist could analyze this more precisely than I can. The question is which is the more efficient system of rewards and investment -- individuals who earned the money spending it or the government spending it. Remember, $800 B spent by the government is $800 B NOT spent by the private citizens who are taxed to pay for that. What becomes of that $800 B that flushes through the government? At least part of it "rubs off" on various administrative agencies and crews of people involved in distributing that money. Are these channels efficient? What duh yuh think? Efficient government workers?!!! What is rewarded in the system posited on government flushing that $800 B into the economy, efficient competitive businesses and enterprises or the opposite? I'm guessing the opposite -- those who are skilled at eating at the government trough get rewarded. Does this accrue to the general improvement of the economy? I doubt it.
OK, the $800 B is money spent and flushed into the economy that isn't actually in the pockets of tax payers to spend in the economy -- it is debt. You know, that doesn't make me feel any more comfortable. It is the case of the ant and the cicada of La Fontaine. The cicada played and sang all summer long and then wailed to the ant of famine when the cold wind blows. The ant said now you can go dance! Lesson: take care of business, don't go begging for a meal in tough times, prepare in advance for tough times. Isn't the stimulus just delaying the pain? Unless the spending of borrowed money is shrewdly, strategically, inspirationally targeted to the right targets, it is just inefficient throwing around of money, forestalling the inevitable and encouraging bad economic behaviors. For example, what is the chance that bailing out GM and Chrysler will be used by these companies to amend their ways and correct the problems that got them where they were? We will get to find out.
Jobless claims up. Now its the weathers fault.
