DISQUS

shaferfinancial · 1 year ago

Really, all those state workers don't use their income to buy things from private industry? Well they do and the same multiplier effect happens. Roads are one way businesses socialize their costs. Without the public paying for roads, then the cost of transportation goes up for businesses. So roads are in one respect a give away from the public to business. Additionally, public expenditures tells businesses what the public deems important and creates a known place for business customers. Much wealth has been produced by businesses serving the government from roads to military equipment (and now soldiers) to computer systems.

Andrew S. · 1 year ago

David, not to be rude, but I'm wondering if you actually read any more than the title of the article. Since you have a Ph.D. and I am just a student you probably wouldn't take my word for it, but this article is from mises.org - the most heavily visited economics website. Sure, government spending on roads may create jobs and put money in workers pockets, but that money came from the taxpayers' pockets. Have we not forgotten that for every $1 in taxes you pay, the government gives back $0.30 in services?

shaferfinancial · 1 year ago

Your not being rude. I would take your word for it over "mises.org" any time if you were right. But you are not. That article is more ideology than economics. For the record, I am not for large government, think there are some real problems with various state governments. Most of my critique is centered on pensions that will bankrupt municipalities and states going ahead. Having said that, government is a critical partner to business, of which I am in. The 1970's and 80's were dominated by heath care technology sectors which were and still are benefiting from government research and development. The 1980's through now is dominated by computer and internet technology which was developed by the use of government grants and actual government agencies surrounding the Pentagon and the military. Going back in history, roads (where we started), or more specifically the interstate highway system was built by the government and led to what we now know as suburbs. Automobiles, oil, real estate, fast-food, etc. were the beneficiaries of this government program.
You see as much as I believe in capitalism and business a true accounting of the history points to a partnership between the two being the best way to push forward economically.
Does government mess up? Yes. Does it get bloated? Yes. But so do businesses.
And if you really wanted to talk about economics, then you have to go no further than econ 101 textbooks when they discuss the macroeconomic guns/butter curves. I believe this is much more important to discuss/understand than some contra-factual ideological article against government!

By the way, don't hide behind your student role, we are all students for life!

As for your "reminder" that government takes from tax payers pockets; yes and then it employs people who buy things, employs businesses that create wealth, and provide services that generally are not provided by or going to be done by private enterprise. If you had to pay out of your pocket for a private road in front of your house to get anywhere and had to pay for the full cost of any college or university (even private colleges get government grants to help with the costs) then you have to ask yourself could you afford to do so? Or is it a good thing that somewhere in history folks thought driving cars and going to college were important enough to subsidize and socialize the costs?

David Shafer · 1 year ago

Andrew,

Thought you might like to continue your education by reading "Supercapitalism: The Transformation of Business, Democracy and Everyday Life" by Robert Reich. Very readable and gives a great historical perspective on economic matters, political matters, and democracy.