It was said by some of those in support of President Biden’s Build Back Better plan that it would not cost a cent. Most recognize the foolishness of the statement, but a large fraction may not have comprehended the chief reason why. Many questioning the zero cost argued those managing the BBB programs would use borrowed money to fund designated public expenditures; that such funds with the added cost of interest must eventually be repaid through taxes. But this argument doesn’t really strike at the heart of things.
There is certainly a cost in the BBB plans approved by Congress, but it doesn’t reside in money printing or future debt repayment. The primary problem lies in the squander of scarce resources: labour, material and equipment, an activity at which government excels.
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