one of the most impressive Republicans I know about – Thaddeus McCotter
Sometimes the gobbledy gook that is government produces a real zinger. This one comes from the UK, but I’m sure that the same thinking applies in the idiotic (i.e. Democrat) wing of the US government too:
This too is an oddity, since the Treasury’s own long-standing research shows not only how investment can revive activity, but also how government investment actually produces a positive return, which could be used to pay down debt or boost other spending programmes.
The first of these is the Treasury Public Model, which shows a rising ‘multiplier effect’ from government spending, Annex, page 102. It shows that for every £1bn spent by government there is a much larger economic impact: £1.1bn in the first year, rising to £1.4bn in both the second and third years. This is a bigger stimulative impact than cuts to either direct or indirect taxation.
OK – so do you have that? Government spending creates a bigger economy. Government, which can create nothing without destroying something first, which might print money and buy somethings and thus produce an artificial “stimulus” in some economic numbers, is able to grow the economy.
Let’s take this to the logical conclusion. If your economy is $10 trillion then why not spend another $10 trillion and get an economy that is $11 trillion? Isn’t that what the above is saying? How about really growing your economy and spend $20 trillion – would that give you an economy of $12 trillion the next year? Would anyone with any logical thought believe this would be a logical outcome?
And yet, the British Treasury publishes this kind of stupidity and apparently believes it. There are two ways that the government can “get money”. It can tax everybody (or tax the hated “rich”, or Big Oil, or Big Tobacco, or whatever evil is the flavor of the day) to get its $10 bucks. It then applies its massive overhead (administrators and diversity managers and quality control managers and Congresscritters and Congressional aides and flacks and PR people and ….) and then spends $10 bucks in order to grow the economy. If you actually took in the 10 bucks out of the economy in the first place and then gave it to your favored union, did you grow anything? Adding in the overhead you actually destroyed value in the total economy, not added to it.
Of course, since its Government they can just print the $10 bucks. In this case, you might be able to get a widget maker to make some more products and buy some supplies and pay some wages to his workers. And in your measurement of economic activity it might show up as an increase. But now you have to pay back the $10. Plus interest. So in the end, did you grow the economy at all? I supposed you might think so as long as you ignore your debts – or if you never plan to pay them back anyway.
However, its just as silly as spending twice your GDP in order to “grow” your economy by 20% or some other ridiculous number. You end up with debt, inflation, and eventual collapse of your civilization.
Just where America is headed. And Britain, and Greece, and…..
And you should either tell your children to start buying gold and silver, or tell them to go live in China.
Good for Representative Nikkel:
HB 1288 passed out of the House on third reading Thursday morning. Four Democrats, Reps. Joel Judd, Gwen Green, Sara Gagliardi and Su Ryden voting no.
House Bill 1288, legislation seeking to put the state’s checkbook online, was approved on second reading in the House Wednesday.
On April 2, Gov. Bill Ritter, a Democrat, signed an executive orderB.J. Nikkel, a Loveland Republican and HB 1288’s sponsor, says Ritter’s executive order does not go far enough and has continued to advocate for her bill’s passage. also geared toward putting state finances online. But Rep.
While the efforts may be similar, Nikkel says it’s important that transparency be accomplished through statute and not executive order because orders can be repealed at any time by any governor and for any reason. Additionally, she has criticized Ritter’s plan to put state expenses online, saying it only allows for aggregate spending totals in many instances.
Interesting that the only opposition was from Democrats. I wonder why they would want ot hide state expenditures from the very people who are being extorted for the money?
GM is a welfare project masquerading as economic activity. And, after the Obama transformation, America will be, too.
The young need to recognize that this is their fight. They need to stop chanting along with the hopeychangey dirges and do something more effective, like form the anti-AARP: The association of Americans who’ll never be able to retire.
Thanks to Robert Tracinski who waded through last night’s good and dribble to come up with the main points The Messiah and His Minions will do in destroying America:
• The government will take over lending directly.
• The government will take over lending indirectly.
• The government will vilify and punish bankers. – show of hands, who wants to graduate and go into banking today? thought so
• No one can know when all of this intervention is going to end or how much bigger it’s going to get.
• Obama will subsidize inefficient and unprofitable “renewable energy” projects.
• Obama will artificially increase the costs of all other forms of energy.
• He will seek socialized medicine. Oooh – question. Just how many trillions will this cost? on top of the porkulus and the Social Security Ponzi scheme?
• He’ll soak the rich.
Elections have consequences and we are getting an idea of just how expensive this last election will be for everyone.