Stifle Yourself

Brian Riedl explains why stimulus packages can’t work. In a nutshell, what stimulates one part of the economy stifles some other part. Stimulus produces economic uncertainty and probably retards economic recovery. Nevertheless, politicians remain eager to promote stimulus packages in the all but certain knowledge that most voters will never see the big picture. This allows politicians to get some credit while avoiding the blame. Public Choice Theory suggests that another stimulus package will sail through Congress.

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