Michigan's spending on roads increased even as road quality decreased. I think we've seen this same trend in school spending. Could there be a common thread?
Most businessmen will say that money can only be absorbed and used usefully at particular rates, not at all rates. It's why companies like Microsoft and Apple are sitting on so much cash rather than just throwing their piggie banks at every neat or cool-sounding project.
Politicians, though, work to a different paradigm, and their optimal absorption and use rates are all they can get all the time. That's the route to votes and extended personal power.
Similar results because it's all government influenced, but education is more about throwing more money at it and regulation and compliance overhead (all those administrators), whereas the roads are more regulations and increasingly the need to keep roads open throughout construction- I think.
2 comments:
Most businessmen will say that money can only be absorbed and used usefully at particular rates, not at all rates. It's why companies like Microsoft and Apple are sitting on so much cash rather than just throwing their piggie banks at every neat or cool-sounding project.
Politicians, though, work to a different paradigm, and their optimal absorption and use rates are all they can get all the time. That's the route to votes and extended personal power.
Eric Hines
Similar results because it's all government influenced, but education is more about throwing more money at it and regulation and compliance overhead (all those administrators), whereas the roads are more regulations and increasingly the need to keep roads open throughout construction- I think.
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