Suppose there was a debate regarding how to spend $1 billion in newly found revenues in the budget. Suppose the centrist Democrat suggests an increase to infrastructure spending. Suppose the centrist Republican suggests an increase in cyber-defense spending. Each is arguing that their plan will get the most good for the money. What is going on here?

Question

Quizplus · Accepted Answer

Both the Democrat and the Republican are suggesting an increase in spending on a particular area, implying they have done a marginal analysis to determine which area would provide the most good for the money. The centrist Democrat is emphasizing the benefits of infrastructure spending while the centrist Republican is emphasizing the benefits of cyber-defense spending. Thus, both are employing marginal analysis, just from different perspectives.

Suppose There Was a Debate Regarding How to Spend $1