published Wednesday, July 27th, 2011

Poor return on ‘investment’

Government spending is sometimes curiously called an “investment.” But money “invested” by Washington was first taken from the private sector, where it might have been invested more wisely.

After all, a private company or individual has a strong interest in investing carefully, because he will lose his own money if he doesn’t. But if government loses money because of unwise spending, it can just take more from taxpayers.

So how well do you think the federal government has been “investing” your tax dollars in recent years?

Peter Kirsanow, a member of the U.S. Commission on Civil Rights, asked a good question about the Obama administration’s spending — or rather “investing” — priorities.

Addressing the president rhetorically, he wrote in National Review that the president has “repeatedly referred to federal spending as ‘investments.’ Since the beginning of your administration, your ‘investment’ spree has added more than $4 trillion to the national debt. At the same time, [gross domestic product] growth is at an anemic 1.8 percent, the nation’s credit rating is in jeopardy, ... the housing market remains in the tank, unemployment is at 9.2 percent, and federal entitlements are imploding. Do you maintain that this is an adequate rate of return on your ‘investments?’”

Of course, the president alone is not responsible for all of those ugly economic realities. There was an enormous national debt before Obama took office, and certainly Congress — and too many members of both parties — have gone along with outrageous spending for decades.

But whomever you blame most for excessive federal spending, this question remains valid: Are we, the people, getting a good return on the huge, so-called “investment” of our tax dollars?

And does our current economic crisis suggest that even more spending, or “investing,” is the solution?

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tanman said...

In the last two and one half years, coincident with President Obama's time in offfice, we in Chattanooga have watched with awe and amazement at the planning and construction of the wonderful new VW plant. That corporation has truly "invested" one billion dollars ($1,000,000,000) in the future of this region and is already providing thousands of new jobs, fanilies with new incomes, spending new money for goods and services and new tax revenues, I might add, in the local economy.

During tha same period our President along with a Democratic controlled Senate and House increased Government spending over four trillion dollars ($4,000,000,000,ooo), which is over 4,000 times the VW investment. What do we have to show for that "investment"? Nothing but higher unemployment, higher debt and belief that our country is ready to implode financially speaking.

If the President could point to a single success even the size of what VW has accomplished, the Nation would think him a genius because they, for the most part, have no idea what those numbers mean. Those four trillion dollars spent responsbly in our private enterprize system would have created the equivalent of 4000 VW plants across America along with hundres of thousands of new jobs.

So when the Government tells you they are "investing" your money, don't believ them. Or you could ask someone in Chattanooga who knows what a billion dollars has done for us.

July 27, 2011 at 8:29 a.m.
jaredstory said...

Except that it was the private sector that caused the financial crisis. Yes, the private sector invests very well in their CEOs and shareholders.

July 27, 2011 at 1:02 p.m.
JoeHill said...

Yeah, let's invest in more corporate jets and private yachts and grand parties to romance mistresses.

July 27, 2011 at 9:39 p.m.
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