Archive for January, 2010

Why Stimulus Isn’t Stimulating

January 9, 2010

“There is no stimulus. Stimulus is not possible. Government stimulus mathematically, economically, is not possible. You can’t stimulate an economy by taking 50 million out of it and then putting the 50 million back in. You can’t stimulate an economy by borrowing 50 million and then throwing it into the private sect…or, ’cause it’s all coming from the private sector.” – Rush Limbaugh

Politicians should be forced to take a ton of mathematics and economics courses.

The other problem, of course, is that anything the government does with redistributing wealth is 70% inefficient. They lose about 70% to overhead(70% has been the number as calculated by several different organizations over the last couple of decades)

So when you take 100% of 50 million from the economy, and try to put it back in, you’re only giving back 15 million. The government must realize this – they have all the numbers. Stimulus is not only not useful, it is harmful!

The trouble is that liberal politicians(including Republicans!) don’t see the economy, and the country, as an equation. If you take something from one place, it is subtraction equal to(or greater, with 70% government overhead) whatever you add back in.

Ultimately, the government can only create incentives for people to make the equation contain more goods(such as the promise to protect you from others’ stealing your goods, otherwise you have no reason to produce), and those incentives are worth the small price to pay for defense and police. But beyond that, they do more harm than good, because when they take your goods beyond a certain low tax(most everyone can feel these high taxes), you have a disincentive to work harder or produce more, thus lowering the overall amount of goods in the equation.(and creating unemployment, lately!)