Friday, June 24, 2011

Giving money away is not spending

It is no mystery why the stimulus has failed to reverse the course of unemployment. Much of those 'expenditures' were actually transfer payments ... money taken from one group of citizens and given to other groups of citizens. In so doing, our government has intentionally taken resources away from those are productive and transferred them to those who are unproductive.

It has been over a full year since the stimulus became law, and it is, in fact, highly logical that our economy is worse than before the stimulus. Unemployment is higher - as is the unemployment rate - because business owners have less money to hire new workers, expand their business or to purchase additional goods and services. They would have more money, except that it's been taken from them and given to folks that are not in a position to ... hire new workers, expand a business or purchase additional goods and services.

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