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Politics : Formerly About Advanced Micro Devices
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To: TimF who wrote (361236)12/3/2007 4:23:56 PM
From: Road Walker  Read Replies (1) of 1574679
 
Giving mortgages to people who can't pay them back, means you take a loss on a mortgage. Do that too often and your business will shrink or even disappear. There is a built in correction mechanism.

But in the meantime a lot of wealth gets destroyed.

With government the build in operation works the other way. Government programs tend to grow whether or not there is extra demand for their services. The interest of the politician is to weld more power, both for its own sake, and perhaps to a greater degree to the extent it can get special interests to support him. If a government program has negative results, that often becomes justification to spend even more money, "look at all these problems, we need to spend money to clear them up".

The government sometimes screws up it's spending decisions, no doubt. Iraq is a PRIME example. So does private industry. There isn't a significant difference. And there isn't much difference at all on the back end effect to the economy.
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