Monday, May 11, 2015

Spending and Redistribution are Not the Answers to Slow Growth

Richard Ebeling emails:
Dear Bob,

I have a new article on the news and commentary website, “EpicTimes,” on, “Spending and Redistribution are Not the Answers to Slow Growth.”

Old fallacies never seem to permanently fad away, and one that keeps reappearing is the notion that slow economic growth and unemployment are caused by “aggregate demand failures.”

Neither taxation nor borrowing by governments can bring about any real net gains in output and employment. They merely transfer resources from the private sector to the government with no net effect.

Another Keynesian fallacy, now repeated by Nobel economist, Joseph Stiglitz, is that there is deficient aggregate demand because the wealthier save too much and the lower income segments of the population don’t have enough income to spend more.

What is not always easy to understand, but is no less the case, is that savings is the essential factor for the formation of capital and the employment of those looking for work in investment and production activities in any society.

If we ask why economic growth has not been more robust and why job creation has been lagging, the real answer is to be found in the economic policies of the government that hinder competitive activity through spiders’ webs of regulation and control, burdensome taxation, and destabilizing monetary policy by central banks.



  1. Giving money stolen from someone else to parasites (both individual and corporate) is a prescription for a slow death.

  2. NYC buildings show connection between Albany corruption and real estate industry, with developers saving millions on taxes
    BY Greg B. Smith
    Saturday, May 9, 2015, 11:06 PM

    To understand the connection between Albany corruption and the New York City real estate industry, take a look at Hampton Court, a new luxury condo building on E. 102nd St. in Manhattan.

    Last year its owners would normally have paid $2.74 million in property taxes on this 230-unit beige-brick building. But under a special tax break called 421-a, the owner paid a mere $91,567.

    And that’s just one year. Since entering the 421-a program in 2006, the owner of Hampton Court has realized $21.9 million in tax savings.

    The lucky owner is Glenwood Management, the realty firm at the center of the corruption cases filed against both former Assembly Speaker Sheldon Silver (D-Manhattan) and Senate Majority Leader Dean Skelos (R-L.I.). Glenwood, listed as Developer 1 in court papers, was involved in separate schemes to line Silver’s pockets and subsidize Skelos’ son Adam, prosecutors have alleged.

    Prosecutors say Silver — while discussing legislation with Glenwood executives — directed them to hire a tax firm that was secretly paying him fees. In Skelos’ case, prosecutors say Skelos instructed Glenwood to subsidize the paycheck of his 32-year-old son.

    yeah let them keep it...doesn't matter how fuckin corrupt everything is...?