In his column today, John Stossel exposes the flaws in the foolish idea that government spending stimulates the economy.
For one thing, “the economy” is just an abstraction. What we call the economy is an extremely complex web of interrelationships, not a machine that sometimes needs a kick to get it started. There are millions of individuals and businesses all looking for the best ways to improve their circumstances. If we leave them alone, they’ll get over the waste caused by the last great bubble. Vast new federal spending and debt won’t hasten the adjustment process, but impedes it.
