Nine deficit myths we can't afford
newdeal20.org
newdeal20.org
I don't even know where to start with this.
"These things are admittedly hard to value precisely-but there can be no doubt that our grandkids will be much better off having been born into a society that has modern infrastructure and services that our government policies can help to provide."
Not all debt goes to infrastructure that lasts 3 generations. In fact very little investment lasts that long. That's why we have depreciation, all capital wears outs (roads, bridges, etc).
When we make direct payments to individuals, financed by the tax payers and those individuals buy things made over seas, we are doing a indirect wealth transfer. That's why China holds so much of our debt. This money isn't just owed to citizens, much of it is owed to foreign nations that expect to be paid back.
See Charlie Munger's article: http://www.slate.com/id/2245328
We are performing a wealth transfer to Wall Street, Automakers and foreign governments. This money will have to be paid back (or defaulted on, which would be a mess) by tax payers at some point in time.
Please please please try to respond based on reality, not the narrative of a reactionary dogma (your response) or the narrative of entrenched forces tied to the success of the current political, financial and regulatory systems (Munger's editorial).
That said, it's quite interesting that you'd both tout an article by Munger while decrying wealth transfer to Wall St. Which part of Munger == Wall St is not completely clear to even the casual observer.
I would also like to point out that it's quite hard to deny that public works projects of the past 80 years, yes 80, as in four generations, is a big part of the success that is modern America. Sure you have to repair and upkeep roads and bridges...but in the meantime those make you...guess what...successful!
Anyone got some comments that aren't clouded by populist narratives? I want to know more about the topics of this article, what are the truths and exaggerations in it? I'm not equipped with the knowledge (yet) to parse this stuff fully.