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Politics : Liberalism: Do You Agree We've Had Enough of It?

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To: Kenneth E. Phillipps who wrote (58209)1/29/2009 3:27:03 PM
From: DizzyG4 Recommendations  Read Replies (2) of 224757
 
Wrong again, Kenneth...

Spending-stimulus advocates claim that govern­ment can "inject" new money into the economy, increasing demand and therefore production. This raises the obvious question: Where does the gov­ernment acquire the money it pumps into the econ­omy? Congress does not have a vault of money waiting to be distributed: Therefore, every dollar Congress "injects" into the economy must first be taxed or borrowed out of the economy. No new spending power is created. It is merely redistrib­uted from one group of people to another.
heritage.org
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