Filed under: Capitalism, Democrat Corruption, Economy, Freedom, Progressivism, Taxes | Tags: Happy Labor Day, Political Ideology, Spending and Jobs
Remember Nancy Pelosi announcing that Unemployment benefit payments created jobs? Paraphrased, but another leftist assurance that if we just pump money into the economy like Lord Keynes said, then there would be this magical multiplier effect which would multiply each dollar of “investment.” She couldn’t explain how it worked but she was just ever so sure that it did.
Well, there you go. Government spending does not, does not, contribute to economic growth. The government has no money of its own. It gets the money it spends from taxpayers’ pockets. Then it has to pay a bunch of bureaucrats before it gets pumped into the economy. Where is this magic “multiplier effect” supposed to come from? Captain Capitalism puts it even more fortuitously:
It’s very simple – government spending does not, in fact, contribute to economic growth. It takes away from economic growth and merely redistributes wealth with a production or efficiency loss.
If you look at what leftists and Keynesians advocate, they advocate merely moving money around in the economy to get things “shaking up a bit” in the childish and naive hopes this jostling will get the economy going again. The problem is this “shaking things up a bit” means taking money from productive people (or the future via borrowing) and giving it to Barack Obama’s biggest supporters – economically worthless, productionless parasites.
Or Graham Tanaka, president and chief economist of Tanaka Capital Management points out that there is clear data: The more federal dollars spent , the higher the unemployment rate. There is an inverse relationship between the size of government and jobs.
Since 1970, all six instances when our government got larger as a percent of GDP, the unemployment rate went higher. All six times when government got smaller as a percent of GDP, our unemployment rate went lower.