This Economics 101 video from the Center for Freedom and Prosperity explains that excessive government spending undermines prosperity by diverting resources from the productive sector of the economy. Moreover, the two main ways of financing government -- taxes and borrowing -- cause additional economic damage.
It's interesting that more and more people are beginning to talk about these things publicly. It didn't appear that this kind of discourse was so commonplace (mainstream even) 20 years ago. It's a real exciting time. I do think we have to be careful with big government. As a country, we have become quite accustom to the government doing things that many see as blatantly counterproductive or at least ineffective (cash for clunkers, cash for caulking, etc.)ReplyDelete
Incentives are out of whack. Spending money is a vote getter. Until this changes the problem will persist.ReplyDelete
And let's not forget debasing the currency via easy money printing, the third way big central government gets its swag.ReplyDelete
So long as people want others to provide their cake for them so they can eat it, too, this problem will persist. That and fooling people with "but think of the children!!!" which is why egregious abuses like $10,000,000 pensions for educators while the kids get a half-rate education are allowed to exist. Why? Because mention privatizing it and people look at you like you just abused a puppy.ReplyDelete