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Good points. However, I think that there is large omission form that economic model: Non-tax money is not all invested. In fact, Americans have a low savings r
by forapurpose 8y ago
Good points. However, I think that there is large omission form that economic model:
Non-tax money is not all invested. In fact, Americans have a low savings rate and tend to spend most of their money on consumption.
That's their choice, of course, and doesn't by itself justify government investment. It does create more demand and need for government investment.
- nybble41 8y agoMore investment is not a uniformly good thing, any more than increased consumption is uniformly beneficial. Not only does it matter what you invest in—and government does not exactly have a stellar track record when it comes to choosing investments so as to maximize ROI—there is also a balance to be struck between investment and consumption. Favoring either one over the other through political means moves us away from the optimum balance, and over-investment (and malinvestment) can be just as destructive as over-consumption.
- forapurpose 8y ago> More investment is not a uniformly good thing Nothing in my post said it was. > government does not exactly have a stellar track record when it comes to choosing investments so as to maximize ROI Who does?