Comment

We're heading in the wrong direction with spending cuts

1
Bob Levin7/31/2011 11:12:10 am PDT

Believe it or not, I’m going to agree with you here.

The reason is this phrase:

spend it on capital improvements, research, and infrastructure then it would be to fund those things with tax revenue over time.

However, I think the Democrats believe that any government spending is good for the economy—such as a library with their name on it. It tends to take the form of pork. They also seem to like to form agencies in charge of the project, rather than letting a private company handle the job, in the same way that Kayser built merchant ships in World War II:

The government should be spending money and keeping the velocity of money high because the definition of a recession is that private industry is not doing that.

This is also true, and the creation of agencies tends to slow the velocity to an extreme nature. Let’s just say that no one on Capital Hill seems to look at velocity as the key to economic health.