Some recent comments of those in positions of power and influence reflect the thinking that blocks real economic recovery.
This from a congressman who worried that the government might not be spending enough to get the economy going — following the debt ceiling deal — as it has so successfully the last few years:
“This idea of pulling money out of the economy in the next couple of years is just bad economics.”
Wonder what he thinks about taxes? After all, taxes take money out of the economy. So, if the government takes the money away from earners, that’s OK. But if they save or spend it, whoa Nellie! (No, I am not saying all taxes are bad or that new taxes should never, ever happen.)
Unsurprisingly, this was the same attitude in a recent New York Times editorial. But it still is interesting to see the fervor they hold for government intervention.
“What the economy needs is real government investment to support demand and create new jobs.”
Amazing. They ignore private enterprise, seeing government as a creator of jobs and driver of demand. They relegate the ideas of free markets, entrepreneurship, private business and, by extension, ownership to also-rans.
Then they find someone who is a Republican – to show the obvious bipartisanship of their absolutely correct position – to agree.
“As … a Republican from Kalispell, Mont., told the pollsters: ‘Unless you have working people, you don’t have revenue from taxes. If you cut spending, jobs will be eliminated and you won’t get any revenue. Every dollar spent creates jobs.’”
Think about that second sentence. Following this reasoning, the government takes taxes from people and companies to pay for jobs. Those jobs generate taxes that are paid to the government. Thus, if the government spends fewer tax dollars, there will be fewer tax-funded jobs that are paying taxes to the government.
This circular thinking is considered a way to grow the economy. It would be comical if it wasn’t so costly and pointless.
Is there a better way to contrast the idea that it’s better to grow the pie than to just slice it up in infinite ways?
