Thursday, April 12, 2007

Government spending anomolies

Pajamas Media: Clinton Saves But Nixon Invests:
"“What’s baffling is the Pentagon’s failure to work with Congress to provide a steady stream of funding for research on TBIs.”

This is less baffling in context, namely the bi-partisan stagnation of public investment of all types since 1980. The nation’s “stock” of public capital - infrastructure, research and development, and ‘human capital’ (educated persons) - began growing more slowly than the economy after the 70s. It had reached its peak during the administration of Richard Nixon, the greatest social spender in U.S. history. Contrary to what you might think, non-defense spending under Clinton grew more slowly than under either Bush 41 or 43. Clinton was absorbed in deficit reduction and perhaps reined in by the Republican Congress after 1994. (The G.O.P.’s fiscal behavior after 2000 suggests they were not against spending so much as spending for which Clinton could take credit.)"

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