America’s Biden Predicament
There's an Edit in the Latest Biden White House Transcript
Biden's Call With Hispanic Lawmakers Goes Off the Rails
'He Will Never Recover': Total Mayhem Engulfs Biden's Re-Election Team
Here's What a Wisconsin Radio Station Edited Out of Their Interview With Biden
Hamas Command Center, Terrorist Weapons Found in Gaza City UNRWA Headquarters
Brutal: Biden Just Took a $90 Million Hit
New Gallup Poll on Immigration Should Be an Eyeopener for the Biden Admin...
Is This Feud Why Joe Biden Won't Step Aside?
One Country Just Passed a Law to Turn Away Asylum Seekers
Biden's Biggest 'Big Boy' Lies Debunked
Hakeem Jeffries Reveals He Met With Biden
A Slew of School Districts in This State Promote LGBTQ+ Ideologies in the...
Here's How Democrats Are Going After Pro-Life Pregnancy Centers
Yikes: This Poll Spells Bad News for Biden With Another 'New Low'
OPINION

Just in Case You Needed More Evidence that Obama’s Faux Stimulus Was a Failure

The opinions expressed by columnists are their own and do not necessarily represent the views of Townhall.com.
Advertisement
Advertisement
Advertisement

Much of the “stimulus” debate has revolved around macroeconomic issues. Obama squandered about $800 billion, supposedly to “jolt” the economy, but growth has been anemic and the employment situation has been miserable.

Advertisement

But it’s equally instructive to look at the microeconomic impact. And that’s exactly what the folks at Reason TV did with this expose of how money was wasted in a suburb of Washington, DC.

While the video is a damning indictment of how the faux stimulus failed, it actually is too generous in its analysis.

It looks at how much money was misallocated in Silver Spring, MD, and shows how few jobs were created, but it also should have asked what would have happened if the so-called stimulus never happened and the $800 billion was left in the productive sector of the economy.

In other words, As I wrote back in September, how much stronger would the economy be if the government had not diverted all that money to Washington?

..to paraphrase Bastiat, we want to look not only as the “seen” of government spending, but we also want to look at the “unseen” of how the money otherwise would have been allocated. What modern economists sometimes refer to as the “opportunity cost” …The relevant question, from an economic perspective, is whether the government can utilize resources more efficiently and productively than the private sector. Needless to say, there are not many types of government spending that meet this test.

 Dan Mitchell, Cato Institute

Sponsored

Join the conversation as a VIP Member

Recommended

Trending on Townhall Videos