“Notwithstanding reports that all economists are now Keynesians and that we all support a big increase in the burden of government, we do not believe that more government spending is a way to improve economic performance. More government spending by Hoover and Roosevelt did not pull the United States economy out of the Great Depression in the 1930s. More government spending did not solve Japan’s “lost decade” in the 1990s. As such, it is a triumph of hope over experience to believe that more government spending will help the U.S. today. To improve the economy, policy makers should focus on reforms that remove impediments to work, saving, investment and production. Lower tax rates and a reduction in the burden of government are the best ways of using fiscal policy to boost growth.”
More here.
This ad has gotten attention around the country (I know, anecdotally). It should have been done during the financial and auto bailouts. I’m proud of CATO for placing the ad.
Well said. And we really have an excellent example: Japan!
I think that letting banks fail would cleanse the financial system of unefficient market players. Everything else will levy a huge huge debt burden on future generations.