Comment by roughly

7 hours ago

Next time someone asks how we're going to pay for, eg, free school lunches, keep this site in mind.

Given 50 million schoolkids in the US and a cost per meal per child of $4, the current number represents 10 meals. At 1 meal a day that would be 2 school weeks, at 2 meals a day that would be 1 school week.

  • We've been at this for 2.5 days, and the president is suggesting this could last a month or more.

    I suspect the long term ROI on free school lunches is going to far exceed that of this war, as well.

    • The government's job is not to maximize its ROI. For example, (and I make no argument about whether the current situation does this), protecting its citizens is of extreme moral importance, even if it's very very expensive and unlikely to somehow feed back into the economy in a way that recoups the cost long term.

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  • 2 school weeks of lunches for less than a week of war costs is a pretty good argument for school lunches. Especially as costs of this start to balloon the longer it goes on.

  • 2 weeks of meal for every school kid in the US!

    Can you imagine the scale of this number?

    3 days of war vs 2 week of meal for every school kid

    Now do the math for Afghan war, probably US could have easily cancelled 70% of loan for every college grad, or could've been built large rail network

  • How many subsidized meals would it represent if you only account for the kids that need one?

    • Honestly, a lot of these programs become substantially more expensive when you add the bureaucracy and hoops required by means testing. The economics are easier if you just give kids food and skip sorting out whether they deserve it or not.

  • Those meals would most likely help a lot of kids become healthy productive members of society. That money would be saved by the families of those kids and used in other parts of the economy. A lot of the cost would therefore be returned. The money spent of this war is producing only destruction.

The question is fundamentally poorly formed, and as a consequence, so is the rebuttal. A state can pay for anything, since it doesn't have to be in a budget surplus.

Household budget analogies emerge any time someone wants to limit spending, or criticize spending, but one of the biggest points of Wealth of Nations (which is the foundation for modern macroeconomics) is that the budget of a state is fundamentally different to that of a household.

If a household fails to maintain its budget, it's game over. People know this, which is why it's a punchy analogy. But it's also a bad analogy.

If a state fails to maintain its budget, it can either print more money or raise taxes. Neither is a great long term fiscal policy, but it's not the end of the world either, and budgetary deficit something most states utilize fairly regularly.

What's missing with the school lunches and present with the Iran War is political will. (I get that is what your point was all along.)

  • This is not exactly true on the scale of these interventions. The state can't run out of money but it does run out of the time and talent of its people, the resources of its land, and the patience of its partners. State capacity is a real limit, and where we direct the money is a pretty strong proxy for where we spend these, the true resources of the state. We don't pay for bombs with dollars, we pay for them with schools, roads, and hospitals.

  • Yeah, I mean, it'd definitely be better if we could just tell the deficit weenies to fuck off, but given that we keep having to have that argument with everyone to the right of Bernie, it's nice to be able to throw it back in their faces in their own language, too.