Un-Liberaled Woman

I’ve been reading the news of the porkulus stimulus bill losing steam in the media, Congress and hearts of citizens all across America. This bill alone solidifies my confidence with my non-vote for President Barry – but that’s assuming I needed some which I didn’t. Anypork, I always hear the argument from the far left about how greeeeeeeeeeat govt. spending is for the economy. And then it’s cue some overblown conclusion about how FDR’s New Deal is the shining example on which to base such lies conclusions.  The other week I found this great speech that pretty much sums up why after just a little bit of looking into the facts, one can put to rest the New Deal/govt. spending argument for saving the economy.  It’s painfully obvious the demands of World War II is what saved the economy with the spur of job creation through companies, lowered candidate base due to the war, and increased demand to fill jobs by companies in order to meet contract deliverables from the war.

I think FDR’s Treasury Secretary (the man who oversaw money distribution and revenue collection during The New Deal) says it best when he acknowledge the failure of FDR’s legacy

“We have tried spending money. We are spending more than we have ever spent before and it does not work. And I have just one interest, and now if I am wrong somebody else can have my job. I want to see this country prosper. I want to see people get a job. I want to see people get enough to eat. We have never made good on our promises. I say after eight years of this administration, we have just as much unemployment as when we started. And enormous debt to boot.”- Henry Morganthau, Secretary of Treasury, in May, 1939.

To often economic policy on the left is defended by govt. spending = job creation and in order to help govt. fund “job creation” we need more taxes (but really only taxes on the “rich” aka the highest full-time workers/producers, not the wealthy). First, that’s an inaccurate picture because it’s only showing you part of it. That type of proposal forgets to consider what would happen in the economy if the money had stayed there and not taken by the govt. If you were planning an investment in your 401k, would you look at just one index you had shares in, or would you look at the entire portfolio? Henry Hazlitt, author of Economics in One Lesson, brings up this very point. In this book Hazlitt describe his broken window fallacy.  If you are looking for enlightenment on the realities of what govt. spending really doesn’t do for our economy get this book.

The Cato Institute has also put out a great video on why government spending is not an effective path to digging an economy out of a recession. My favorite “ain’t-that-the-truth part” – If government spending was the right path to economic growth, then North Korea would be a Nirvana.