Boon or doggle?

Foundation for Economic Education
by Sheldon Richman

01/22/09

Even if government spending in theory could ’stimulate the economy’ in a genuine, sustainable way, it would not follow that politicians and bureaucrats would know how to spend the money intelligently. The pressures to do something now and the perverse incentives facing those in charge of the money guarantee there would be more doggle than boon. Government ‘countercyclical’ spending is notorious for kicking in after the recession has passed. The planners’ information is necessarily dated, and their capacity to act quickly is overestimated...

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Informant: Thomas L. Knapp



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