Why the stimulus won't work

Charles Steele explains why the various stimulus plans won't work.

Expending scarce resources on useless projects may "put people to work," but it remains consumption of capital, and is simply more of what Adam Smith called decay. The idea that stimulus is stimulus and spending solves problems of capital misallocation is just crazy nonsense. Waste is waste, and it makes us poorer, not wealthier.

(Via Picking losers)

Comments

[James P]

Excellent! Nothing persuades me to support a cause more than our idiotic government imposing a ban on it. I've taken up pipe-smoking as a result, and if I ever get the chance to envelop Tony Blair in its output, I shall die happy!

[James P]

Sorry, Bishop - my previous comment was intended for the smoking thread, where I have now copied it. Can you delete it (and this) and spare my blushes? Many thanks!