The View From 1776
Sunday, September 15, 2013
Who Really Benefits From Government Regulations and Spending?
I have written often over the past four years that the only real beneficiary of the Fed’s massive creation of phony dollars through its quantitative-easement monetary policy is, not the general public, but the financial sector, especially the stock market.
Quantitative easement, either because Keynesian economists ignore the historical record, or because the Fed’s real intention was to centralize control of the entire financial sector, was falsely sold to the public as the only way to get consumers spending more (by adding to their already too heavy credit-card debt) and thus to revive the GDP and re-employ the millions who lost their jobs in the 2007-2008 economic melt down.
Ronald Reagan said that the closest thing on this earth to immortality is government spending programs. Robert Higgs (below) explains why that is so, contending that all government spending and regulatory programs are based on ulterior motives. Whether those programs effectively promote their announced aim is immaterial. What counts is the benefit derived by one special-interest group or another.
My version is that government programs are not intended to be effective, measured by personal or business criteria. The aims are to employ as many people as possible, for as long as possible, at the greatest imaginable cost. Which is to say the point for politicians is to buy votes and remain in office.