Posted by
Rich from NW Indiana on Saturday, December 20, 2008 4:05:56 AM
The media is getting all giddy about the return of the "New Deal". They all look warmly back to the days of the new deal. They think about all the money the government is going to spend on projects. They talk about all the things FDR and the government did during the dark days of the depression.
One small little problem with the New Deal. It was an enormous failure.
Yes, Virginia, what you thought you learned in social studies is dead wrong. The new deal did nothing to end the depression. In fact it most likely made it longer and much worse. Had WWII not happened it would have extended it into the 1940's.
You sure wouldn't think so if you listen to the "mainstream" media. Economics don't change that much. The fundamentals don't change. Government spending never "helps" the economy. The worst time is when the economy is bad, which is the time that most want more government spending. A bad combination if you ask me.
When the government spend money it has to come from somewhere. That somewhere is you, the dumb smuck taxpayer. So that dollar you would have spent somewhere (or saved for later) is now in the governments grabby hands. And since it didn't earn it, it thinks nothing on how to spend it. Even if the government spends it the same way you would have, it will manage to pay more for it and will be far less efficient while spending it.
Downturns require that the government spends LESS money not more. But nobody from the government learns anything do they? Economic growth is always from the people not the government.