October 31, 2011

All Stimulus Is Not Created Equal!

Whenever possible, we should be spending on those things that we either consider investments in our future or expenditures that we know we will be making in the future anyway,.

If we repair a road, we will be more productive in the future. If we plant a tree in northern Michigan our future productivity does not rise. Both expenditures act as a current stimulus; however, improving the road has the added benefit of improving our ability for future production.

A stimulus should be prioritized.

1 comment:

  1. Sure the tree planting increases productivity, which is "The rate at which goods or services are produced especially output per unit of labor."http://www.answers.com/topic/productivity

    The planting is a service. And the tree is a growing investment that will be consumed making something in the future. I think Weyerhauser and Georgia Pacific would agree with me, not you.

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