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Trickle-Down Government Is All Wet

Steven H of WA Wrote: Oct 14, 2012 4:00 PM
That was called the “leaking bucket” syndrome, resulting in the “greening of Washington” (from a book back the 70s). Today the 10 of the highest income counties in the country are around Washington, D.C.

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...