This is nothing new…

Faith in government spending has existed for much longer than any of us has been alive.  However, so has the resistance to it.  In 1946, Henry Hazlitt was already warning the world of the dangers of government spending, based on the arguments of still others who came before.  In his book Economics in One Lesson, he writes:

There is no more persistent and influential faith in the world today than the faith in government spending. Everywhere government spending is presented as a panacea for all our economic ills. Is private industry partially stagnant? We can fix it all by government spending. Is there unemployment? That is obviously due to “insufficient private purchasing power.” The remedy is just as obvious. All that is necessary is for the government to spend enough to make up the “deficiency”…

Read the entire chapter on government spending via taxes here.  The entire book, here available for FREE, later deals with such issues as massive government borrowing and the printing of money to fund such public works.

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