The View From 1776
Saturday, January 29, 2011
What Is Investment?
Liberal-progressives employ a special definition.
The dictionary’s primary definition of investment is to save money from earnings and to put it to use in a property or project that offers a prospect of returning all of the invested funds, together with a profit commensurate with the involved degree of risk and with prevailing interest rates.
Liberal-progressives, however, employ the term to denote deficit spending to benefit special interest groups that are their political allies or are speculative boondoggles such as green energy and green automobiles that cannot survive without massive governmental subsidies. Another such liberal-progressive investment is showering labor unions, particularly public employees unions, with government privileges or deficit spending cash.
Money lavished upon teachers’ unions, for example, repays no benefits at all. The more money applied to special education and to teachers’ medical and retirement benefits, the poorer the educational results.
If private individuals were to use the liberal-progressive definition of investment, the result would be spending every penny of wages and salaries, then borrowing to the hilt and spending all of it. As are becoming the Federal, state, and local governments that have pursued this investment course, all private citizens would be destitute at the time of retirement from the workforce.