GOVERNMENT SPENDING - EVEN GOV'T DEFICIT SPENDING - IS NEVER AS STIMULATIVE AS PRIVATE/PERSONAL SPENDING

IF DEFICIT SPENDING WAS STIMULATIVE, THE  GREECE WOULD HAVE A BIGGER, BETTER, HOTTER AND SWEETER ECONOMY THAN GERMANY.

IT DOES NOT.

IF DEFICIT SPENDING WAS STIMULATIVE, AND CUTTING GOVERNMENT SPENDING WAS RECESSIONARY, THEN THE 1930'S AND 1940'S WOULD HAVE BEEN BETTER ECONOMICALLY THAN THE 1950'S.

THEY WERE NOT.

WHEN BUSINESSES AND PEOPLE SPEND THE MONEY THEY EARN ON THE THINGS THEY WANT, THEN THE BUSINESSES AND PEOPLE WHO PRODUCE THE THINGS THEY BUY DO BETTER. AND PEOPLE ARE HAPPIER AND MORE OPTIMISTIC BECAUSE THEY ACHIEVE DESIRED RESULTS FROM THEIR TOIL AND RISK.

BUT, WHEN POLITICIANS AND BUREAUCRATS SPEND TAXPAYER MONEY ON BOONDOGGLES, IT ONLY BENEFITS THEIR LOBBYIST PALS AND POLITICAL CRONIES.

WHEN PEOPLE AND BUSINESSES SPEND HAVE MORE MONEY TO SPEND, IT CREATES AN INCENTIVE FOR EVERYONE TO PRODUCE THINGS THEY MIGHT WANT - AND THIS INCREASES COMPETITION AND HENCE VALUES. BUT, WHEN POLITICIANS HAVE MORE MONEY TO SPEND IT ONLY INCREASES LOBBYING AND CRONYISM.

BOTTOM-LINE:


IF WE WANT TO GROW THE ECONOMY, THEN WE HAVE TO CUT GOVERNMENT SPENDING AND REDUCE THE INFLUENCE OF POLITICIANS AND LOBBYISTS ON THE ECONOMY.


THAT MEANS REVERSING THESE TRENDS.