The View From 1776
Saturday, February 13, 2010
Robbing Peter To Pay Paul
Obama’s stimulus programs have imposed a negative drag on the economy, a drag that will intensify in 2011.
Government stimulus spending is largely taking tax revenues from one group of workers, or borrowing from banks money that businessmen might otherwise have borrowed to pay workers, and giving it to politically favored classes of citizens. The overworked metaphor of rearranging the deck chairs on the sinking Titanic remains an apt description.
A delayed and serious additional shifting, from Federal manipulation to state budget squeezes, will become more apparent in 2011, when stimulus spending winds down. Read the Investor’s Business Daily analysis: State Budget Woes A Drag On Growth, And Will Get Worse