Government stimulus packages are attempts to deny reality

Rebirth of Reason
by Edward W. Younkins

04/06/09

Government demand-management policies aimed at stimulating economic activity do not and cannot create any new wealth — economic stimulants will not succeed. Government stimulus proposals are illogical. The government cannot inject money into the economy without first removing it from the economy. The government can distribute funds only by collecting more taxes, borrowing from the private sector, or printing additional money. There can be no stimulus if the government increases the ability of some people to spend by decreasing other people’s ability to spend. When a government taxes or borrows it simply transfers spending power from private owners to political spenders...

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Informant: Thomas L. Knapp



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