By John Tamny, RealClear Markets
October 5, 2021 – “…It’s a reminder that
their [government] consumption of precious wealth doesn’t instigate economic
growth; rather it’s a consequence of it. It’s loud evidence of the ferocious
stupidity of a number routinely cited by politicians and economists: GDP. GDP
would go down – a lot – if government spending were slashed, which just goes to
show how bankrupt the calculation is. Growth happens, or is expected to happen,
and politicians spend its fruits. There’s no new growth to speak of from this
political consumption. To say otherwise is to engage in double counting.
“So, the Biden administration claims the
trillions he would like spent are “paid for.” No, they’re not. The trillions
spent are a cost. They’re an economic somnolent. Instead of
trillions of precious wealth being directed to its perceived highest use in the
marketplace, it will instead be allocated by people like Marco Rubio and
Alexandria Ocasio-Cortez. Are Rubio and AOC as skillful at investing as Warren
Buffett and Peter Thiel? Please don’t answer. It would be a waste of words.
“The simple truth is that government
spending is a burdensome tax. And it’s felt right away as businesses and
entrepreneurs get by with less so that politicians can spend more. And no,
there’s no short-term “sugar high” as even some on the Austrian School right
presume. The burden of government consumption is immediate, and it saps growth
immediately.”
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