I’ve never understood the idea that taking money from the general public (who then can’t spend it themselves), running it through the Government trough (and the eventual skimming off its percentage of overhead), and then putting a lesser amount back into the general public is supposed to “stimulates” the economy. Even if you are throwing in borrowed money, it’s still a closed loop because that borrowed money has to be returned.
I grow weary that of the spin that Government stimulates the economy – to me, it is Bastiat’s Window writ large. You want a better economy – let the wealth building part of it simply keep more of its own money to invest in itself and keep government out of the way. We’ve just had 8 years of Keynesian / Statist economic “direction” with Government picking winners and losers and putting its economic thumb on the scale.
The image is perfect – go ahead and plug a device into that strip and tell me that its gonna work.
(H/T: Cafe Hayek)
