In today’s Freeman column, Sheldon Richman does a superb job of demonstrating why federal spending (and whether it’s paid for by taxing or borrowing doesn’t matter) can only get in the way of the one thing that matters, namely rising production of goods and services that consumers want. All that government ever does is to divert resources away from employment in the private sector, where businesses have to use them efficiently to create the things consumers desire, and into the maw of the state, which puts them to use in the kinds of myopic projects that appeal to politicians.
You’ll never read a clearer and more devastating rebuttal to the Keynesian foolishness than this.
