kquick Wrote:
Oct 15, 2012 12:12 PM
Brian, simple KEY point you missed: People who are paid directly or indirectly by the government, pay their taxes with tax revenues. They add NO new revenues to the revenue pool. Only truly private-private profit making transactions create NEW wealth that can be taxed to support a larger government. Government stimulus necessarily "spirals down", does not "grow" an economy. It can only serve to temporarily bridgd a business downturn until business itself recovers. Taken to the extreme as in fully communist countries, total financial stagnation results. Socialist countries stagger along in slow growth, wondering why they never have robust growth, convincing themselves "this is all there is" and to hope for more "empoverishes others."