Spending Our Way Into Greater Depression

Mike Rozeff reports:

They imagine brand new bridges, newly-paved roads, and intercity rail transport. Even if these projects paid off, they are a tiny fraction of all government spending. And most of these do not pay off. Government spending only creates wealth if it spends money on things whose return exceeds the cost of the capital used. The government’s own operating costs are so high that, viewed as a business, it gets a return on its investments that fall far short of its capital costs. In other words, the government is like a gigantic money-losing business. One reason for this is that interest groups get the money. The image of public-minded officials dispersing the money efficiently is unreal.

Another great one from Professor Rozeff.An article well worth you time.