Free Republic
Browse · Search
News/Activism
Topics · Post Article

He's got many more lies (than $5 trillion) where that came from.
1 posted on 05/25/2012 3:14:11 PM PDT by lbryce
[ Post Reply | Private Reply | View Replies ]


To: lbryce
Whether the federal government spends money wisely or foolishly, the truth is that the vast majority of it still ends up in the pockets of the American people who then use it to buy the things they need for their daily lives.

Yes and no. I don't mean to quibble, but strange things happen to dollars that pass through the feral government's hands.

A dollar's worth of taxes is removed from the open market. When it's spent by the feral government, it sort of does and sort of doesn't return. If it's spent on a $4,000 toilet seat for the Department of Defense, it ends up on the books of a DOD contractor, all right, but it and the other $3,999 have been removed from circulation for all practical purposes. If it's spent on a feral "worker's" salary, it'll be returned to the market, but it didn't buy the same value of work from the feral "employee" as it would have bought from someone in private industry. That dollar hasn't literally been devalued, but by being spent on reduced value, it returns less than full value to the market.

Here's another factor: a dollar borrowed by the feral government necessitates paying interest with additional dollars harvested from the citizenry, so the borrowed dollar actually costs more than $1.00; further, feral government borrowing and squandering results in inflation, which additionally reduces the value of everyone's dollars and serves as a hidden tax on both the citizenry and markets.

Someone who's better versed than I in economics could explain it better, I'm sure.

2 posted on 05/25/2012 3:28:31 PM PDT by Standing Wolf
[ Post Reply | Private Reply | To 1 | View Replies ]

To: lbryce

It’s amazing that Zero has the gall to trumpet that the increase in spending under his regime was the lowest in 60 years. When you spend trillions off the starting block, the rate of increase is bound to slow even as you spend trillions more.We can only borrow so much money. It definitely doesn’t mean actual spending decreased.


3 posted on 05/25/2012 3:40:19 PM PDT by luvbach1 (Stop the destruction in 2012 or continue the decline)
[ Post Reply | Private Reply | To 1 | View Replies ]

To: lbryce

All the enemies of America, foreign and domestic, are considerably wealthier than they were 4 years ago.


5 posted on 05/25/2012 6:44:10 PM PDT by philetus (Keep doing what you always do and you'll eventually get what you deserve)
[ Post Reply | Private Reply | To 1 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson