There’s an ongoing debate about Keynesian economics, stimulus spending, and various versions of fiscal austerity, and regular readers know I do everything possible to explain that you can promote added prosperity by reducing the burden of government spending.
Simply stated, we get more jobs, output, and growth when resources are allocated by competitive markets. But when resources are allocated by political forces, cronyism and pork cause inefficiency and waste.
Paul Krugman has a different perspective on these issues, which is hardly a revelation. But I am surprised that he oftentimes doesn’t get the numbers quite right when he delves into specific case studies.
He claimed that spending cuts caused an Estonian economic downturn in 2008, but the government’s budget actually skyrocketed by 18 percentthat year.
He complained about a “government pullback” in the United Kingdom eventhough the data show that government spending was climbing faster than inflation.
In Other News: WH Daily Intel Briefings Are Optional? Obama Attends Fewer than Half | Michael Schaus
John Ransom and the Social Security Show-- Get Your Social Security Questions Answered | John Ransom
In Other News: Ukrainians Demolish Statue of Lenin – Putin Offers Statue of Himself as Replacement | Michael Schaus
In Other News: Hey White People! All GOP Policies Apparently Designed to Kill Black People | Michael Schaus