Replies to post #76133 on Intel Corp (INTC)

[Elmer Phud]

Your argument should be that spending should be ranked by how much it stimulates, and how much the country would benefit from the work done.

I thought that was obvious. In drawing a comparison between building/replacing a bridge and "saving" a mouse, I'll let you decide which is a more responsible use of tax payer money under these conditions. Personally, I consider it pork.

[Tenchu]

Sarmad, > Actually, if protecting this mouse is done by paying wages to someone, then it definitely does stimulate the economy.

That's the mentality of "Wasteful spending is a stimulus."

> Your argument should be that spending should be ranked by how much it stimulates, and how much the country would benefit from the work done.

That's my argument as well.

Tenchu

[spokeshave]

Even hiring some people to bury dollars, and hiring others to dig them out would stimulate the economy.

The problem with such a purely Keynesian approach is that, when the holes are filled in, the digger is again out of work, and the country benefits not one bit from the hole.

A much better approach to stimulus (if one believes that it is necessary) is to fund projects that not only put people to work, but also provides a benefit once completed - the best case being that the benefit is economic in nature.

At the risk of being accused of having an agenda, I'll use building nuclear power plants as an example. If this effort were undertaken as a stimulus project, it would put people to work, build an infrastructure that continues to supply jobs even after the project is complete, lower energy costs, and reduce dependence on fossil fuels.

"Stimulus" projects that provide no lasting economic benefit once completed are rightly called "pork".

[The Duke of URL]

"Actually, if protecting this mouse is done by paying wages to someone, then it definitely does stimulate the economy."

It really doesn't. If the Government spends money on things that have no value, then all that happens is that the devalue the dollar.

Technically, the Velocity of Money (Milton Friedman) is increased, but the total GNP is not.

If pissing away money on worthless endeavors worked, we would be in no economic trouble, today. I guess this is sort of a test.