Re: [Pen-l] Democrats to placate Republicans on recovery plan

[Jim Devine <jdevine03@xxxxxxxxx>]

John Gulick wrote:
> Why are the
> Repubs so dead-set against it [increased government investment]?

One reason is because the market serves those with money to spend and
the main interest group that the GOP serves has a lot of it. Cutting
taxes directly allows these spenders to benefit more from the
institutions that serve them the best. On the other hand, spending on
infrastructure (etc.) is supposed to have external benefits, both
pecuniary (raising incomes via a multiplier process) and technical
(lowering transportation costs, etc.) Most of the benefits do not go
directly to the rich (only to some of the rich who own
construction-related businesses). In fact, the way public goods
benefit the public is usually relatively egalitarian, so that the rich
do not get the benefits to which they've become accustomed -- at the
same time that the great unwashed get benefits to which they're
clearly not entitled (from the rich perspective).

The Democrats generally serve the same type of interest group but
usually is more far-sighted and focused less on the immediate and
particularistic interests. More Sorosian, one might say. They see
benefits from the poor and working classes getting a share of the
pie...
-- 
Jim Devine / "Disbelief in magic can force a poor soul into believing
in government and business."  -- Tom Robbins
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