Quote:
Originally Posted by Slava
I just completely disagree. I think that borrowing to build capital projects and borrowing for operations are completely different. If I borrow money to say build an addition on my house, that's fine. If I borrow money to pay my utility bill though, that's not fine.
And while I'm loathe to use a household budget as a government budget, I think that analogy makes sense here.
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The government isn't a household. Productive people are it's asset, spending on salaries is an investment in its-elf that garners returns. Capital spending on goods originating outside of the market, or capital spending that takes too long to trickle into the market are the things you need to avoid when your goal is the bolster the economy.
I think that's the thing you don't understand.