Mugwump Investing
The budget compromise last fall committed the country to billions of dollars in defense cuts. Regrettably, with the first bomb on Baghdad, that deal was blown. Even more regrettably, military spending has almost no effect on long-term economic growth, according to studies by economist David Aschauer of Bates College in Maine. To stimulate the economy, the government should be pouring its money into dams, bridges, ports and roads. Every dollar spent on infrastructure, Aschauer says, adds $4 to national output within four or five years because it helps business operate more efficiently....