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Old 08-08-2011, 10:17 AM  
ilnjscb
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Quote:
Originally Posted by sperbonzo View Post
Personally I'm a big Mises fan. You and I completely agree on this issue. It's always been bizarre to me when people say that government spending "puts money into the economy" When I explain to them that the government doesn't create any wealth, it simply takes if from people that do, (in the form of taxes, or devaluation of the currency by printing more), or borrowing it by selling bonds, which it must pay interest on, people STILL don't seem to get it. It's along the same lines of saying that tax cuts "cost the government", as if the wealth was created by the government, and it was giving it out to someone....
Borrowing in the form of bonds and investing in infrastructure that yields better returns is a legitimate use of government funds.

Borrowing to fund annual budget is not.
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