Some Democrats still think that government stimulation of demand is an antidote to a slowing economy. Yet economics has certain iron laws that the government violates at its peril. One of them has been called Say's Law, because it was first enunciated by the late 18th-century Frenchman Jean-Baptiste Say. He said "products are paid for with products." Or to rephrase the point, "a society can't consume if it doesn't produce." Hillary's assertion that her "stimulus" package shouldn't be paid for denies reality. Somebody has to pay for it. One man's consumption must be paid for by his own or someone else's production.
Government spending is a cost to the economy, not a benefit. There are some things we want the government to do, but the answer to an economic slowdown is less government, not more.
2 comments:
Meh, I like the throwing money from planes option. I really love somebody to tell me where all this money is coming from. Well hey, this 140 billion is like 30 seconds of war in Iraq right?
The government keeps a printing press in the basement, yo.
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