Useful Political Analogy

[timmyson]

On a recent visit home, my mother and I got into it over the value of government services, and whether it was worthwhile to go into deficit to support social programs. I don't know if I was able to communicate my idea that government has economic value, even though it doesn't directly produce wealth (her phrase, arguably put, but I hope my meaning

Comments

[anonymous]

I notice the lighthouse example refers to "profit". Fine, when there is profit tax it to maintain the lighthouse but when there isn't don't go into debt to redecorate the lighthouse!
Mom.
P.S. And I don't know what Emily means? ;D

[timmyson]

You've got a double standard there: are you maintaining, or redecorating the lighthouse?

Government can create wealth by building the lighthouse in the first place, and can recoup the debt in taxation on the profit.