Saving by Spending

http://www.phillyburbs.com/pb-dyn/news/111-12192008-1640717.html

It is often stated that when the government spends money on certain programs, a "savings" results on future government expenditures.

Sorry, but it's just not true. If only it was. We could just hand over all our money to the government and all our "problems" would be solved.

First, if I have a dollar to spend, I will spend it. If the government takes it from me, they will spend it and I won't. While it may be true that the government will now not have to spend an additional amount on food stamps in the future, the truth is they would have to spend even less than that if I spent it myself.

Why is that? Because I will spend it more efficiently.

1. It won't be going to a bridge to nowhere.

2. Since its my money, I will make sure I get the best value. That's because its not other peoples money, which is the only kind of money the government can spend.

3. I won't give it to companies that have failed by making bad decisions or because no one likes its products.

4. If I give it all directly to a charity, it will be to an efective local charity that has a one on one strategy for helping put someone's life back on track. The government would give it to a politically connected charity, after it it took a big portion of it to pay for the beaurocracy to get it there.

After saying;

She also took shots at TARP, the $700 billion Troubled Assets Relief Program, saying it’s been mismanaged and questioned whether it should have ever been passed by Congress.

comes the saddest line from the article;

Robin Stelly, field coordinator for Penn Action, an issues advocacy organization whose goal is social, racial and economic justice, told the crowd of about 50 not to be “scared of those numbers. The money will be well spent.”

The money will be well spent? Just like the TARP money she just admitted wasn't.

Hardly.