Over at the Daily Caller, I provide a primer on why government spending doesn’t “stimulate” the economy over the short-run or the long-run.
I look at the huge size of government spending in the United States, and I review the effects of recent stimulus efforts.
Then I describe the government’s “leaky bucket,” which explains why spending harms the economy in the long run, whether or not there are any short-run stimulus effects.
With America heading rapidly toward a spending-fueled debt crisis, these certainly are the times the try men’s souls. Nonetheless, please have a Happy Fourth!