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Politics : American Presidential Politics and foreign affairs

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To: TimF who wrote (25660)2/4/2008 4:06:29 PM
From: Jim S  Read Replies (2) of 71588
 
Tim, it seems to me that something that's being overlooked in this discussion is the purpose of the deficit spending. For example, a war that threatens the existence of a nation would be worth some deficit spending, even if it drags on for a long time. Or, deficit spending for infrastructure, which will return an economic gain could be worth borrowing for, even over a very long term, so long as the return exceeds the expense.

OTOH, spending on things that have no real value to an economy or a nation's existence, such as transfer payments, has an overall negative impact, both short and long term.

Essentially, we're talking about borrowing for investment versus expense.
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