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October 9, 2008

The Right Choice

While Nouriel Roubini comes across as a bit of a kook sometimes, he does make a valid point about investing in infrastructure rather than buying troubled assets as a way to help us get out of our current financial mess.

If the private sector does not spend and/or cannot spend, old-fashioned traditional Keynesian spending by the government is necessary. It is true that we already have large and growing budget deficits; but $300 billion of public works is more effective and productive than spending $700 billion to buy toxic assets. [via Forbes]

As an Austrian School of Ecomomics believer, I feel that the government should just be in business to create policies (i.e. taxes) and incentives that encourage private entities to build new infrastructure using their money instead of the governments.  Why keep spending our way to another debt ridden future?

This entry was posted on Thursday, October 9th, 2008 at 5:34 am and is filed under Economy. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.

4 Responses to “The Right Choice”

  1. Bill aka NO DooDahs! said:
    October 9th, 2008 at 9:31 am

    Just noticed the new theme … nice choice …

  2. Tom said:
    October 9th, 2008 at 10:02 am

    Bill: Yeah I was inspired to copy some blogger.

  3. Caprica said:
    October 9th, 2008 at 5:44 pm

    The other Austrian school of thought of course was to move to Germany, start a political party and invade Poland.

  4. Tom said:
    October 10th, 2008 at 4:25 am

    Caprica: That particular school of thought moves fast going east.

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