Richman Versus ‘Stimulus’

Sheldon Richman has a nice article out today summarizing the folly of “stimulus” spending:

Since the government has no money lying around waiting to be spent, it will have to borrow close to a trillion dollars to carry out the program President-elect Obama and the congressional leadership are planning. But borrowing money for their pet projects injects nothing into the economy. It merely moves money from where it currently is in the economy to where politicians want it to be. How is that a stimulus?

Moreover, the debt will be covered (monetized) by the Federal Reserve by creating money out of thin air.

Obama is trying to frighten the American public into supporting a massive expansion of federal power — an expansion that Obama would have favored regardless of economic conditions. But a more-socialized economy will not lead to prosperity: it will undermine it. Now is the time for Americans who care about their liberties and their economic well-being to stand up and demand economic liberty.