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Comment by fennecfoxen

Basic economists' definition: opportunity cost. If the government spends a dollar and gets a worse result than the dollar would have gotten if it stayed in the private sector, then the economy is worse off. (That includes what the dollar would have bought, and any damage to incentives to work/save/innovate/invest/buy capital/take risks/etc that came from collecting that dollar from its previous owner.)

Of course, if you want to reinvigorate the economy, you'd do better to do something about the bureaucracy first - you know, the bureaucracy that requested stool samples from the guy who wanted to run a (bottled-)olive-oil export website.

parent fennecfoxen 14 years ago

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