Why the stimulus won't work
Feb 25, 2009
Bishop Hill in Economics

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)

 

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