Wednesday, April 28, 2004
I don't have much today. I do however want to discuss a term that seems to be getting kicked around a lot.
Today's term of the day is "guns and butter economy." I'm not sure why the word "and" is there. It should be "or." Anyway, the term has been bandied about quite a bit. I even heard it mentioned the other day, when Mr. Greenspan spoke.
A guns and butter economy might be described as having your cake and eating it too. Guns represent military expenses. Butter represents social services. When you have fixed income then you may pay for one, but only at the cost of the other.
The problem is that when you raise spending for one you must cut the spending for the other. Unless, government is willing to take in more taxes.
The reason that this term is getting kicked about is that every one is scared about the economy. We're at war. We've just gotten a tax cut. There is no way that politicians cut back in social services. (Not if they want to get elected again.)
This is where the deficit comes from. (Or so a lot of people say.)
I heard "Guns And Butter" for the first time recently. I had to look it up. It seems kind of silly to invent a term for something so simple to understand, but what do I know. I thought that I would pass it along. In case any of you hear it, then you will know what it means.
Today's term of the day is "guns and butter economy." I'm not sure why the word "and" is there. It should be "or." Anyway, the term has been bandied about quite a bit. I even heard it mentioned the other day, when Mr. Greenspan spoke.
A guns and butter economy might be described as having your cake and eating it too. Guns represent military expenses. Butter represents social services. When you have fixed income then you may pay for one, but only at the cost of the other.
The problem is that when you raise spending for one you must cut the spending for the other. Unless, government is willing to take in more taxes.
The reason that this term is getting kicked about is that every one is scared about the economy. We're at war. We've just gotten a tax cut. There is no way that politicians cut back in social services. (Not if they want to get elected again.)
This is where the deficit comes from. (Or so a lot of people say.)
I heard "Guns And Butter" for the first time recently. I had to look it up. It seems kind of silly to invent a term for something so simple to understand, but what do I know. I thought that I would pass it along. In case any of you hear it, then you will know what it means.
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