It’s exactly the carelessness and waste you get with any handout of “free” money:
I’ve also been told of one big grant going to upgrade car parking at a school that didn’t know how else to spend the cash. Nice, but that car park is precisely where they will next year build a new classroom. I think the argument is that you can justify going into debt if it helps to make the economy more productive and thus lay the ground work by which the debt can be repaid as quickly as possible. Or, you can do what governments too often do - throw money around on half-arsed, lame-arsed and ill-considered schemes so they can appear to be doing something. Anything so the PM and sundry ministers can be seen on the news of an evening wearing a hard hat and a fluro-vest. Like $43 billion on a fibre network for braodband etc that apparently has no business plan and for which no cost/benefit analysis has been done. But hey, the original plan was for only $4 billion, so $43 billion has got to better, hasn't it? Hasn't it? |
Friday, June 12, 2009
Just spend it. It’s free!
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The idea that government spending can provide economic stimulus is based on Keynesian multiplier concepts that I had thought were thoroughly discredited twenty years ago. Of course, the real point is to fund every boondoggle the left has ever pined for.
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