Instead of spending time thinking about how they can grind more money out of the hinterlands, the elite in Washington should focus on helping the engine of free enterprise get revved up.
Economists are clear; money in private hands benefits the recovery much more than a of government spending. They call this the multiplier of the spending. Because government spending is allocated based on political decisions more than economic justification, it is often spent on unproductive uses.
Private businesses and families that misuse money pay a consequence for their behavior and hence they make better decisions in the allocation of funds.
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