Friday, November 14, 2008

The Truth About The Phony "Stimulus" Packages

Anyone, who discusses proposed government "Stimulus" Packages as though they actually stimulate the economy, is poorly informed about basic economics.

Brian Riedl slams home this point:

Government stimulus bills are based on the idea that feeding new money into the economy will increase demand, and thus production. But where does government get this money? Congress doesn't have its own stash. Every dollar it injects into the economy must first be taxed or borrowed out of the economy. No new spending power is created. It's merely redistributed from one group of people to another.

His entire comment can be read here.

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