It is much more likely that today's disappointing economic growth is the result of anti-growth fiscal policy, rather than restrictive monetary policy. It may seem paradoxical, but $1 trillion of government "stimulus" spending only harms the economy because a) government spends money less efficiently than the private sector (i.e., it would have been better to not borrow all that money and instead to cut marginal tax rates), and b) the huge increase in government spending that has occurred creates expectations (and fears) of huge increases in future tax burdens. Moreover, a larger public sector inevitably brings with it more regulations that help smother private sector initiative.
~ Scott GrannisAnyone agree, disagree with Mr. Grannis?
Government, even in its best state, is but a necessary evil; in its worst state, an intolerable one. by Thomas Paine.ReplyDelete
Big government sucks the life out of the economy. It kills initiative in people. Its the thorns and briar in the lives of the citizens. Unrestricted government restricts the freedoms of the people. It a form of tyranny the founders new had to be watched. Our government today is run by men with a shopping list of bankrupt radical ideas that their trying to shove down our throats. God help us.