In today’s Wall Street Journal, professor Edward Lazear’s article hits the nail on the head: the great problem we face is the explosion of federal spending, not the size of the budget deficit. Here is his conclusion:

“Let us not be confused by promises of job, coupled with fiscally responsible sounding language that masks the underlying irresponsibility of budget decisions. Proposals that increase taxes and spending, even if they do not increase the deficit, will place a substantial burden on our recovering economy and on future economic growth.”

Here’s the gigantic blind spot that big government advocates (of all parties) have: They fail to understand that because resources are limited, the more the government spends on the variety of things politicians like, the less is left for the private sector, where wealth is created and where innovation occurs.