Public or private spending
Reader comment on: Obama, AEI Push Infrastructure
Submitted by Michael Greenberg (United States), Nov 8, 2014 22:18
Public spending is using taxpayer money to paint a bridge. The main beneficiaries are the bridge painters.
Private spending is a taxpayer using his own money to open a store. The main beneficiaries are the store owner and the store employees.
Here's the difference. After the bridge is painted, the painters go away. After the store is opened, the store employees have jobs that can last for many, many years.
Central planners can get the bridge painted. Entrepreneurs can get the store opened. (Entrepreneurs can probably get the bridge painted too and for a lot less.)
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