In response to:

Trickle-Down Government Is All Wet

rawtruth Wrote: Oct 13, 2012 11:47 AM
Remember that government employees with their benefits make at least 50% more than similar private sector jobs. Also government employees want to keep expanding the programs that gives them their jobs rather than really working to get be off the government program. They have no incentive to eliminate poverty.

President Obama’s economic ideas hold that government spending on construction, alternative energy sources welfare will inspire long term growth. But this theory has a big problem: Government is a terrible allocator of resources. Spending borrowed money on public infrastructure and even more state employees creates jobs wholly dependent on… government spending. Expanding the welfare state also increases dependency and does nothing to expand economic growth in the long term.

This “demand-side” philosophy rests on the claim that some 70 percent of gross domestic product (GDP) is consumption. Hence boosting consumption—by pouring borrowed money into more food stamps, Obama-phones and extended unemployment...