Friday, November 27, 2009

Yuletide economics

“At least the Christmas stimulus strengthens the economy, right? Wrong, says Waldfogel. If all spending justified itself, we would pay people to dig holes and then refill them — or build bridges to unpopulated Alaskan islands. Spending is good if the purchaser, or the recipient of a gift, values the commodity more than he does the money it costs. Otherwise, there is a subtraction from society’s store of value.”

Perhaps we should spread George Will’s message, before Christmas shopping begins.

[Via http://firstordergoods.wordpress.com]

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