Ask Michael Burke Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Ask Michael Burke

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Skeeter Bug who wrote (112117)	3/11/2008 11:43:44 PM
From: TimF	Read Replies (2) of 132070

$1.00 spent by the government now will return a $1.00 to future generations. It may it may not. If it does its still a poor investment because the nominal rate of return is zero, and the real rate would be negative. Some government spending would have a real rate of return, but most government spending can't legitimately be called and investment. Most of it is transfer payments. That could be called theft but its theft from the taxpayers to the recipients if it is theft. I wasn't talking about the government. I was talking about society or the economy as a whole. The consumption of goods from the government is done by the society that produces the wealth that future generations will enjoy. Now I think the government should spend a lot less, but government spending through taxation takes growth out of the economy just as government spending through borrowing does. If borrowing was theft from the future, taxes would be as well. I'd say neither is, at least if neither is so great that they are enormously destructive to the economy and cause it to shrink or stagnate.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next