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Politics : Ask Michael Burke

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To: Knighty Tin who wrote (110876)	1/29/2008 9:32:40 PM
From: Freedom Fighter	Read Replies (1) of 132070

KT, We agree that there is a different impact depending on the type of spending. Increasing consumption via government is always a bad idea in the long term even if it addresses short term needs or gives the economy a short term boost. So basically, everything the democrats stand for is a bad idea economically. It's simply a matter of them being intellectually honest enough to admit that all their programs are inefficient consumption boosters but that they are willing to wound the goose that lays the golden egg in order to help people in the SHORT TERM. I think many conservatives would respect their desires and might even meet them halfway if they would admit that much and agree to roll back the failures. Unfortunately, most democrats are intellectually dishonest and won't admit to the long term damage they do because it would cost them politically. Others (probably most) are just too stupid to understand the economics to begin with. Virtually none are willing to roll back anything even when it's a proven disaster. Increasing savings and investment is always a good idea for the long term. So in effect, anything that lowers corporate taxes and reduces government spending is a great idea. Over time profits are reinvested and create more growth. Profits that cannot be reinvested at adequate rates of return are distributed to shareholders who invest them elsewhere to get adequate returns. Certainly not all companies do a perfect job of investing, but in aggregate they obviously do a much better job than government. Anything that reduces taxes on savings and capital is very good for everyone over the "long haul". Government spending on infrastructure is a good idea in theory, but corruption, politics, etc.. make getting good value on the dollars problematical almost without fail.

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