There is no such thing as government spending. Everything’s an investment.

Barack Obama is set to announce new spending on items such as high-speed rail and alternative energy in tonight’s State of the Union. But instead of calling it spending, he will call it investment.

Hey, I can play this game too.

  • Those wars in Afghanistan and Iraq did not involve a single dollar of spending; that money was an investment in international liberty.
  • Building a border fence is an investment in security.

We can do the same on the revenue side of government.

  • Those income tax cuts are investments in labor.
  • Tax cuts on investments are investments in capital.
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One response to “There is no such thing as government spending. Everything’s an investment.

  1. Pingback: The Most Important Word in the State of the Union Address « Chasing Fat Tails

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