But what's amazing here, obviously, is that Mr Phillips is justifying building aircraft carriers because government spending creates jobs and stimulates the economy. And he's right about that! But it seems that there are no other things the government spends money on, apart from defence, that Mr Phillips believes can stimulate the economy. He appears to believe that while government spending on aircraft carriers leads to workers getting hired, spending their paychecks, and helping the recovery, government spending on highways, high-speed rail, education, and health care does not. Meanwhile, Mr Phillips also believes, as he argued in a Washington Post op-ed last week, that the government shouldn't borrow any more money, because that's leading us to economic ruin, like Greece. And he believes that the government shouldn't raise taxes, because that kills jobs. So where is the money supposed to come from? We're left with one possibility: Mr Phillips believes that we should build more aircraft carriers to stimulate the economy, and fund it by cutting other government spending programmes. But obviously when you cut other government spending programmes, the people who were working for those programmes lose their jobs, stop receiving paychecks, and stop spending money, which harms the recovery. And then there's the question of how many $2.6m prostitute-safe-drinking programmes you can find to cut. You need 3,500 of them to fund your $9 billion aircraft carrier.
via economist.com
That truly is an impressive example of mental gymnastics ....
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