undefined | Better HN

0 pointsNoPiece12y ago0 comments

Of course, if you feel like the Government spending is good investment and will bring a return, then no problem. If you think it is wasteful political payoff, then it is a problem.

The core problems is if the government taxes and extra $1000 dollars away from you that you would have used to grow your business, then spends it on debt service, or war, or something wasteful, that will slow growth.

0 comments

cantankerous12y ago

Debt service that allows it to borrow more then spend more in the immediate. Wars that require massive amounts of spending on things that include manufactured goods. Something wasteful....which is open to significant interpretation in a lot of cases. Waste is part of any large organization. Government isn't alone there.

It's just not this simple. It never is. That's why these arguments about debt and economy keep breaking down.

NoPieceOP12y ago

I agree, except when the amount of debt gets so large, and goes way beyond the immediate. Then it becomes much more clear that it is a problem.

There is a case to be made that in 2008-2009, a big, debt financed, short term stimulus could have been helpful. But when that metastasizes into long term spending that doesn't look like it is going anywhere soon, and doesn't seem to be accomplishing anything, then it is worthwhile to sound the alarm.

j / k navigate · click thread line to collapse