Economic News and Analysis: Bernanke, Geithner Tread Carefully on Dollar - WSJ.com

ECONOMIC UTILITY: Economic News and Analysis: Bernanke, Geithner Tread Carefully on Dollar - WSJ.com:

"Tyler you might consider a study of 'economic utility'.

It might lead you to better understand that when government and unions promise benefits that are indirectly paid for, the money for these benefits has to come from somewhere (and the services provided by government will also be relatively more expensive and of a relatively lower quality - but that's another issue).

And, where this money comes from is directly out of workers potential paychecks in increasing the indirect costs of employment. Thus, as a spur to outsourcing and the substitution of equipment for labor, there are fewer jobs in the US.

As the money comes from capital (e.g. higher capital gains and income taxes), then the ability and willingness to take risks and put capital to work is both diminished and more costly. After all, capital is global and when the money goes to pay for foreign oil or interest on government bonds paid to foreigners or to buy inexpensive goods, it's no longer there for the US to spend and invest with.

As the money is taken by government, it is often doled out to favorite government projects - most of which again distort economic utility functions, etc.

You might read some of the insightful articles by Art Laffer to stop blaming the wealthy and see that its the average voter who is screwing themselves by being misled by politicians.

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