Chain Letter

But I'll die as I stand here today
Knowing that deep in my heart
They'll fall to ruin one day
--Pretenders

Don't buy the argument that government borrowing and spending is a necessary 'investment' that will increase future standard of living. It is true that investment is necessary to improve standard of living. But investing comes from income that has been saved, not from borrowing resources from others, or by creating dollars out of thin air.

Here is the train of thought to keep in mind:

Higher standard of living comes from improving productivity.

Improved productivity comes from investment.

Investment comes from capital formation.

Capital is formed from savings.

Savings comes from setting aside a portion of income for future use.

The key to the game is capital formation, which comes from savings. If you remember this, you'll be able to separate wheat from chaff in any economic 'stimulus' proposal.