Friday, February 27, 2009

Defense Spending

Republicans generally argue for low taxes and limited government spending with the exception of defense spending. Generally, the argument is protection of individuals to live free and act as profit-maximizing capitalists. The defense spending is justified as a means to protection only, not economic stimulus.

Beyond the stimulus, defense spending seems to be particularly well-aligned with Republican economic ideas: 1) since government's are the sole purchasers of military equipment - they are best positioned to act in a utility-maximizing way, 2) The spending does not crowd out private investors, and 3) (related to 1 and 2) the money is a pure stimulus to the economy.

There are probably other reasons as well. I never thought of it this way - I suspect many others are the same. Thought I'd share.

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