The View From 1776

The Daily Socialist - 6/16/10

Does Unlimited Government Spending Bring Prosperity?

Opportunity costs, to which the writer refers, are the opportunities foregone when one chooses to spend limited resources on certain things and not on others.  Austrian economists recognize that not all consumers want the same things.  Keynesians favor government regulations, subsidies, and taxes nudging consumers toward things, like “green” autos and ethanol that relatively few people would buy of their own free will.

Posted by .(JavaScript must be enabled to view this email address) on 06/16 at 11:52 PM
  1. Tom,

    You are taking liberties with what "Keynesians favor." While the hated liberals may indeed be pushing for more responsibility in our society to escape our oil addiction, a greener life style is not an issue that Keynes weighed in on (having departed this veil of tears some time ago).

    Your second point, that absent a government policy tilted toward energy conservation, people would buy wasteful autos and appliances, may have some merit.

    Perhaps encouraging wise use of resources can be justified under the rubric that Government is supposed to "promote the general welfare." The general welfare includes the welfare of generations to come, so that it is our obligation to leave them some oil in the ground and landscape unpolluted -- even if the natural inclination is to be fat, lazy and wasteful.
    Posted by .(JavaScript must be enabled to view this email address)  on  06/17  at  09:16 AM
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