Needless to say, all of this would be just fine if there was a shred of evidence that government spending us into oblivion made us better off. Not only is there no such evidence, but the proof in the pudding is the opposite.
Look around the world. The economies that are the most free are the ones that are the most prosperous. Those with the largest encroachments of government are the ones that perform the worst.
A study released a few weeks ago by three professors at Harvard Business School boldly challenged common perceptions about the benefits of government spending.
Incumbent members of Congress, particularly if they are powerful committee chairmen, often tout their value to their districts by the amount of federal money they bring home.
According to this new study, it turns out that this isn’t such good news. The government money simply displaces the private sector. According to the study, “the average firm in the chairman’s state did not benefit at all from the increase in spending.” Rather, “firms significantly cut physical and R&D spending, reduce employment, and experience lower sales.”
Economics, the joke goes, is common sense made difficult.
It just takes common sense to appreciate that our economy is not recovering because it is being strangled by government.
This will continue until we start going in the other direction. Cutting back government – spending and taxes – and unleashing again private American citizens to work and live free.