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The federal government doesn't have a capital budget; however, private enterprises do have a capital budget and when they invest in productive assets such as
The federal government doesn't have a capital budget; however, private enterprises do have a capital budget and when they invest in productive assets such as machinery it is recorded in their capital budget as an asset. What is one of the explanations why the federal government's investments are not discussed in relation to a capital budget and recorded as an asset like a private enterprise's investments are? Group of answer choices Private enterprise's investments are in assets, which are going to earn revenues and pay for themselves. While the federal government's investments in education are much more productive. This leads to a bias in government spending. Private enterprise's investments are in assets that are meant to increase production, which are going to earn revenues and pay for themselves. Thus, private enterprise's spending is unambiguously going towards investments. It is very difficult to determine when the federal government's spending is an investment. Private enterprise's investments are in assets, which are going to earn revenues and pay for themselves. While the federal government's investments are never productive. Both the federal government and private enterprise make investments towards the future. However, the federal government's investments are much more tangible and productive. None of
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