WHY UNDER THE WELFARE STATE WAS THE GOVERNMENT THE MARKET
Non-productive government spending, and public service jobs in quantities deter productive work. Non-productive spending, even when designed to to spur demand, actually reduces demand. This artifical stimulation like an addiction require larger injections of government spending to reach the same effect. This form of consumption without a market is a disquised form of consumption and will not stimulate the economy. Increased taxes for profitable enterprises, greater welfare benefits distributions, and more government spending deter and reduce demand. These force work to diminish demand by undermining production. The end game summaries rewards favoring work over leisure, investment over consumption, production over sumps of wealth, taxable or untaxable activity, and government can directly effect the expansion of real demand. Government spending must be cut whenever its yield is less than the private sector.
[Learn More ...]
&Links
