As the news media proclaims government spending the golden bullet that can save us from sure economic demise, someone has finally shot back with an articulate explanation of why such Keynesian hyperbole just doesn’t pass the smell test.
In a YouTube video produced by the Center for Freedom and Prosperity titled “Obama’s So-Called Stimulus: Good For Government, Bad For the Economy,” the Cato Institute’s Daniel Mitchell explains that history provides ample evidence that smaller government is the true engine of economic growth.
As CF&P Foundation President Andrew Quinlan noted in a release, “President Obama’s plan to expand the burden of government is misguided. Redistributing wealth while increasing the size of government is not a recipe for real economic growth. We need a plan that encourages work, savings and investment.”
The piece couldn’t be more timely, especially as Colorado Democrats boast Obama’s plan could bring $2.9 billion to Colorado’s economy. State Treasurer Cary Kennedy is so giggly, she can hardly see straight.
The plan, which would account for more than 3 percent of the nation’s gross domestic project over two years, might sound nice in theory, it brings up a second essential economics lesson for today. Just because you print money, it doesn’t make it have value.
Conservative Libertarian Outpost 
January 29, 2009 at 23:17
Right on Patrick.
I looks like we are headed for a year or so of depression followed by Hyper Inflation.
Hyper Inflation occurs when there is a huge increase in money supply but the new liquidity does nothing to increase production.
So look out. It’s gonna get ugly.
LikeLike
January 30, 2009 at 09:12
It has to do with actual wealth creation, production, and so on. The Keynesian methodology in essence involves the government, and printing presses.
Thanks for stopping by.
LikeLike