MUST READ – THOMAS SOWELL: Democrats Bite Democrats: Part II

Government Spending Cannot Grow the Economy
     …because Government Money is Taken FROM the Economy!

Tracing the history of the national debt back to the beginning of the country, the CBO finds that the national debt did not exceed 50 percent of GDP, even when the country was fighting the Civil War, the First World War or any other war except World War II. Moreover, a graph in the CBO report shows the national debt going down sharply after World War II, as the nation began paying off its wartime when the war was over…

When you take money from the taxpayers and spend it to rescue the jobs of one set of workers– your union political supporters, in this case– what does that do to the demand for the jobs of other workers, whose products taxpayers would have bought with the money you took away from them? There is no net economic gain to the country from this, though there may well be political gains for the administration from having rescued their UAW supporters.

CLICK HERE to read the entire article–well worth it, as always!

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Posted on August 4, 2010, in Budget, Commentary, Deficit, MUST READ, Thomas Sowell and tagged , , . Bookmark the permalink. Leave a comment.

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