RE: No Subject

[Michael Jones <powderfnger99@yahoo.com>]

<<<
I disagree. There are innumerable government expenditures that
create (or preserve) wealth. The highway system is just one example.
What I do think is true is that, rather than just by default leaving
all of Social Security's investments in government securities, some
judgement should be made as to whether the funds would be better
off turned back to private industry through stock or bond purchases.
>>>

Few would argue the value of a good highway system. But is this
an investment that directly generates wealth? No. It's still
needed for the society, however.

If goverment wants me to pay a tax to build a highway, they
take money from my income, or when I purchase a product/service.
It's clear about where the money is coming from and what the benefit
is. Everyone shares in the tax and in the benefit.

One could argue, e.g., that the Hotel that opens up next to the highway
will employ people who pay taxes. These taxes collected
in the future will pay for my benefits, which in effect
indirectly creates wealth. 

I would chose another approach: let me take my money and invest
directly in the Hotel, effectively putting the government out
of the loop. I paid the tax to build the highway because government
is usually the best solution for such goods. 

What would you prefer? The rate of return of the government bond
used to build the road, or the rate of investment return for
the Hotel?

Michael