The Obama Debt Plan
Brian Riedl asks 10 questions about the Economic Stimulus Bill. One of them:
We’re told that government spending will add new spending power to the economy. But Congress doesn’t have a vault of money waiting to be distributed: Every dollar lawmakers “inject” into the economy must first be taxed or borrowed out of the economy. If government borrows the money from American investors, investment spending drops accordingly. If it’s borrowed from foreigners, net exports drop accordingly. How does borrowing $800 billion from one group of people and giving that $800 billion to another group of people make us wealthier?
Plus, Obama’s Trillion Dollar “Stimulus” Fantasy, at $300,000 per Job.
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