The IUSB Vision Weblog

The way to crush the middle class is to grind them between the millstones of taxation and inflation. – Vladimir Lenin

One Trillion Dollars Spent and Not One New Job?

Posted by iusbvision on January 23, 2009

UPDATE I – Check THIS out.

Hey don’t blame me, I opposed the bailout(s).

This is a perfect example of why social spending doesn’t grow an economy well if at all.

1. The money is spent for political reasons and not economic ones.

2. When the government becomes the source of money no wealth is created, just debt and that is inflationary.

3. Recessions come at a time when there is a lack of liquidity among the public and discretional spending and investment are down. Inflation lowers that liquidity and debt has to be paid back by the public which also lowers liquidity.

4. Unemployment during the “New Deal” that Democrats are so proud of never fell below 20%. Most of “New Deal” spending went to swing states to buy votes.

5. If social spending was the backbone of economic growth, Sweden would be a super power by now.

6. LBJ’s war on poverty actually grew poverty, not decreased it.

One Response to “One Trillion Dollars Spent and Not One New Job?”

  1. Angelo said

    Maybe Obama is president because everybody wants to be a psychiatrist and nobody wants to be crazy.

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