Dwelt a miner, forty-niner

Actually, the California Gold Rush started, not in 1849, but in January 1848 when gold was found in Coloma, California. Though it is difficult to be precise, it is thought that gold worth many billions of dollars in current values was extracted, a great deal of money and a great contribution to the USA economy. For example, San Francisco grew from a few hundred residents before the discovery of gold to almost 40000 residents in a very short time. This was growth through exploitation of US natural resources (and miners) and not through exploitation of US ingenuity (though, no doubt, many miners were ingenious), which had a multiplier affect throughout the US economy, thus increasing federal government income.

 

A Republican’s moondoggle

Boondoggle: Work of little or no value done merely to look busy.
Moondoggle: Establishing a Moon colony – work of little or no value done merely to look busy (and appear inspirational).

When a government introduces financing into the economy, John Maynard Keynes terms it “loan expenditure” – for example, public unemployment benefit is partly financed out of government loans. Keynes noted that the reasoning behind types of loan expenditure often seem unclear:

It is curious how common sense, wriggling for an escape from absurd conclusions, has been apt to reach a preference for wholly “wasteful” forms of loan expenditure rather than for partly wasteful forms, which, because they are not wholly wasteful, tend to be judged on strict “business” principles.
— J M Keynes “Chapter 10. The Marginal Propensity to Consume and the Multiplier (VI)”, The General Theory of Employment, Interest and Money, 1936 [Keynes’s emphasis]