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California Governor Spends $25 Billion Per Year On Illegals, Officials Warned Dam Failing...

California Governor Spends $25 Billion Per Year On Illegals, Officials Warned Dam Failing 12 Years Ago

Posted by Kelly Fox on Feb 17, 2017 10:07 am

Let's pretend we're all good Keynesians.
What would generate more economic activity? Fixing a dam? Or giving out benefits to illegal aliens in the same dollar amount?

If participating, keep your analysis Keynesian or classical. No other schools allowed, obviously, as that would destroy the goal here.

http://www.thegatewaypundit.com/2017/02/california-governor-spends-25-billion-per-year-illegals-officials-warned-dam-failing-12-years-ago/

 

~Kelly Fox Director of Member Services

Re: California Governor Spends $25 Billion Per Year On Illegals, Officials Warned Dam Failing 12 Years Ago

Posted by D Linde on Feb 18, 2017 7:01 am

Kelly,

​Here's my Keynesian response:

​In the short run, we generate more economic activity fixing the dam.  All of the currency will be spent on the project.  If we give the currency to the illegal aliens, a small amount will be saved and a much larger chunk will be sent back to their home countries to support relatives, so not all of the funds will be spent in the domestic economy.  The multiplier effect is much larger with fixing the dam.  (I am sure that I came to that conclusion because I am a priviledged white dude living in suburbia with inherently racist tendencies and lacking a globalist perspective.)

​However in the long run, we generate at least two magnitudes of order greater amount of economic activity giving the currency to the illegal aliens.  The dam is not repaired and eventually it fails.  There is massive destruction of physical assets like the town being wiped out and good agricultural land that permanently disappears.  Just think of all the currency that needs to be created and spent rebuilding and repairing everything!  (Never mind the loss of life and all of the pain and suffering endured by the survivors.)  After all, economic growth is always debt based anyway, right?

So did I pass the test?

Re: California Governor Spends $25 Billion Per Year On Illegals, Officials Warned Dam Failing 12 Years Ago

Posted by Katy Delay on Feb 20, 2017 7:45 pm

Kelly, As a pretend-Keynesian, Mr. Linde has hit the nail on the head.  

I thought of adding to the fun with a classical viewpoint, but then I realized that if I'm pretending I am a Keynesian, there is no classical argument at all!  

But since you asked for the classical argument, I'll pretend for a moment that I'm no longer a Keynesian.  Obviously, I don't think classical economists would like either option.  That's like your dog giving you two choices:  a bowl of dogfood now, or a bowl of dogfood in five minutes.  It's what's known as a "false dilemma," i.e. there are additional options.

I think a Classisist would suggest that private companies bid to build the dam, and then one of them would hire your workers (hopefully not illegal ones, though).  That way you get both birds with one stone.