Re: Gore the Eliminator

["Harry Veeder" <eo200@xxxxxxxxxxxxxxxxxxx>]

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>From: Sven R Larson <larson@xxxxxx>
>To: "pkt@xxxxxxxxxxxxxxxx" <pkt@xxxxxxxxxxxxxxxx>
>Subject: Re: Gore the Eliminator
>Date: Fri, Sep 8, 2000, 9:08 am
>

>Clifford Poirot wrote:
>> On the whole, I am far more concerned with the composition of government
>> spending and the reasons for incurring debt. Specifically, our budget is
>> still too top heavy with government subsidies to the defense lobby. This
>> money would be better apportioned on creating an
>> environmental-transportation complex (environmental clean up and bullet
>> trains). As we did with the railroads in the 19th century, we could issue
>> long term bonds to finance construction of a national, high speed bullet
>> train network and inter and intra-city train, subway and bus links.
>
>Now, here's a good idea! If these investments are fiscally separated,
>with its own line of bonds etc., so that it's immune to budget balancing
>efforts, then it might work as a long-term stable, reliable and
>contributive government involvement.
>
>/srl

To be really effective, the maturity of specific bonds
should be linked to the completion of associated projects.
i.e. There are no rewards unless the government is following through
on its commitments. In this way bond holders will actively participate
in the government projects they are helping to finance instead
just passively supplying money and slurping up the interest rewards.

Harry Veeder