Re: Question about President's Social Security plan

royls_at_telus.net
Date: 01/15/05 

Date: Sat, 15 Jan 2005 21:51:18 GMT

On Sat, 15 Jan 2005 09:37:07 -0500, Gogarty <Gogarty@Clongowes.edu>
wrote:

>In article <CKidnSysQLnRI3XcRVn-pg@rcn.net>, tonyp@world.std.com says...
>>
>>Bush's idea is to divert a large stream of money from the Treasury to Wall
>>Street. He knows perfectly well that scooping out generous ladle-fulls of
>>cash is easiest for those who have the stream of money flowing between their
>>legs. If the stream flows through the US Treasury, the ladle-fulls might
>>buy F16s for communal use. If it flows through Wall Sreet, the ladle-fulls
>>are more likely to buy Learjets for private use. Private Learjets are of
>>course _much_ better for "the economy" :-)
>>
>Actually, that's true.

Actually, it's false.

>Private investment is much better for the economy than
>military investment.

For one thing, that is a _general_ rule that has many exceptions, and
for another, private Learjets are more an investment in conspicuous
consumption than in productive capital.

>Note I did not say public investment. Much public
>investment is essential to a grwiinbg and propserous economy. Roads and
>harbors, for example. But all military investment is money down a rat hole
>with no return on investment whatever.

False and idiotic. The most expensive military of all is one that is
not strong enough to deter aggression.

>Spend a zillion dollars on an aircraft
>carrier and you provide some jobs while she is being built aftwer which she is
>a drain on the economy returning nothing. Spend the same on a fleet of
>freighters or ocean liners or cruise ships -- or Lear jets -- and you provide
>jobs and income generation for the life of those vessels.

Garbage. Freighters, OK, they are transporting goods. Cruise ships
are productive capital for the entertainment/hospitality/tourism
industry. But private jets are a pretty much pure consumption item, a
status symbol that provides no more return on investment than typical
military expenditures.

-- Roy L

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