Pesto:
Quote:
We're broke (unable to meet current needs out of current revenues), so let's borrow money NOW so spend on more current needs (reducing unemployment) and then we'll have the future taxpayer's pay off the principle and interest out of future sources of revenue (who cares which ones, that's THEIR problem).
You will note that an implicit part of this whole process is permanent increasing borrowing to service debt and interest. See Greece for a similar process.
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No, it's not like Greece at all. This is just more conservative/teabagger blather. First, with the 30/10 and America Fast Forward proposals, you have a dedicated stream of income. Over the long-term, this would not increase debt. 30/10 and America Fast Forward would provide this money up front, instead of having to wait thirty years to collect it. You claim to be knowledgeable about economics. There is something called the time value of money that is important with these infrastructure investments. Accelerating construction of the these projects reduces overall project costs because there is less interest to be paid on the cost of capital if the project is built sooner and there is less inflation in the price of building materials if the infrastructure investment is built in five years instead of thirty years.
It is also unlike Greece because you would put people back to work with good jobs building new subways and freeways. These people will then pay taxes, they will spend money in their communities supporting businesses that will also pay taxes. The multiplier effect is another simple economic concept.
Finally, unlike Greece, the money for the 30/10 Plan would not go for pensions, etc... It would go to build physical, tangible, infrastructure assets that LA will have for the next 50-75 years. This will help Southern California residents be more productive by giving them an alternative to highway congestion and it will likely provide them with more discretionary income by giving them an alternative modes of transportation that require spending thousands of dollars per year on oil. Again, this will be money that can be spent locally instead of being sent abroad to import oil.