I'm converted

[ark steel]

NO MORE TAX CUTS FOR THE RICH!! SPEND, BABY, SPEND!!!

http://www.huffingtonpost.com/marvi...as-n_b_8352234.html?ncid=txtlnkusaolp00000592

 

[Chuck]

"Commonsensically, when the government spends money, for example, paying construction workers to build a bridge, that money circulates in the economy as the workers buy groceries, perhaps make home repairs, or buy a new car. Such spending stimulates the economy resulting in more spending than otherwise and subsequent economic growth."

Doesn't this effect also happen with military spending? So why are lefties so deadset against it?

 

[ark steel]

"Commonsensically, when the government spends money, for example, paying construction workers to build a bridge, that money circulates in the economy as the workers buy groceries, perhaps make home repairs, or buy a new car. Such spending stimulates the economy resulting in more spending than otherwise and subsequent economic growth."

Doesn't this effect also happen with military spending? So why are lefties so deadset against it?

In a purely theoretical model, the same $$ spent by the government or returned to the people ought to have the same economic benefit. The devil lies in the details, of course. Government spends money based upon political ideology or as payback to supporters, not on an economic basis. Individuals, even rich folk, make spending decisions based upon economic reasons. In addition, the speed with which the money gets back into the economy is greatly increased when it doesn't have to go through 15 layers of bureaucracy.

Hence, the money in the hands of individuals has a greater impact on the economy than that spent by the government.