New Study Shows Tax Cuts Most Effective Stimulus
Curtis Dubay /
The failure of the stimulus package to create jobs and generate economic growth becomes more apparent each day – despite preposterous claims from the White House about all the jobs they say it has created and saved. Counter intuitively (at least in the sane world outside of Washington), the stimulus’ failure increases the risk that Congress will try to pass another stimulus package based on their perceived need to “do something” to help the still-ailing economy.
If Congress constructs the next stimulus the same way it did the last – jam packed with pork barrel spending projects favored by liberals – it will fail as miserably as the first did to create jobs and stir economic activity. That is because government spending cannot create economic growth. More government spending, whether financed by taxes or borrowing, only takes money from one sector of the economy and transfers it to another. The government creates no new spending power when it redistributes money so it creates no new economic growth. (more…)