Thursday, July 07, 2011

Government Spending ≠ Investment


This whole talk of government investment in infrastructure and whatever is not “INVESTMENT” at all.  Our Federal Government would like you to believe that is the case, because it sounds a whole lot better than government spending.  Therefore, government does not invest; it only “SPENDS.”  And what it spends, it must extract from the private sector through taxation, which by the way is that segment of the economy that actually does indeed create jobs and wealth, or rely on the Federal Reserve System to monetarize our federal deficits, which of course it has through the infamous QE 1 & 2.

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