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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: combjelly who wrote (363232)	12/17/2007 2:14:25 PM
From: Tenchusatsu	Read Replies (1) \| Respond to of 1576627

CJ, > Ok, Tench, where does the money go if not into the economy? Outer space? A black hole? Where? The question should be, "Where does the money come from?" The answer to that question should prove that government spending is not to be confused with "putting money into the eonomy." Tenchusatsu

To: combjelly who wrote (363232)	12/28/2007 4:58:08 PM
From: TimF	Read Replies (1) \| Respond to of 1576627

There are real costs involved in government programs. To pretend that such programs are free lunches because "the money spent goes back in to the economy" is to believe a false idea. Resources get used to produce the goods and services for and/or in the government. People get employed in the government, or in contracts producing things for the government and thus do not use their labor to produce other goods and services. Fuel gets burned, building materials get used up, there is always an opportunity cost, you don't have a free lunch. And the losses are simple 1 for one losses either, where you give up X resources in the private sector in order to get X in to the government sector. There is a dead weight loss involved. The cost of the effort to comply with, and to avoid taxes is a real cost. And taxes, and often spending and/or rules created by government programs create perverse incentives that distort and/or reduce investment.