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> Money spent by government comes back as tax income by stimulated economic growth. You're ignoring the fact that said money was stimulating economic growth be
by anamax 16y ago
> Money spent by government comes back as tax income by stimulated economic growth.
You're ignoring the fact that said money was stimulating economic growth before govt took it.
Govt spending is not stimulating. Stimulating spending is stimulating, regardless of who does it. Unstimulating spending is unstimulation, regardless of who does it.
The difference between private spending and public spending is that private spending is usually an attempt to make money while public spending is a combination of keeping govt employees happy and buying votes. (Yes, the two are related.)
- stretchwithme 16y agoTaking money from individuals and using it for politically popular "investments" usually winds up destroying the capital. Politicians don't usually care if its paid back, as long they can claim credit for giving it away. Private investors are much more likely to earn a return on an investment. Which means they can keep re-investing it. Yes, you get all the "stimulating" effect without destroying wealth. Of course, its been that way wherever societies become wealthy. And government handles all of the "investments" wherever societies become poor.