Quantum Windbag
Gold Member
- May 9, 2010
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This is one of the reasons I love Harvard, they can be surprised at the simplest things. How often have conservatives claimed that more government spending actually means fewer jobs? Now they can point to that bastion of liberalism and gloat.
Stimulus Surprise: Companies Retrench When Government Spends — HBS Working Knowledge
Maybe we can get the government to stop spending trillions of dollars to help us now.
Some of the dollars directly supplant private-sector activitythey literally undertake projects the private sector was planning to do on its own. The Tennessee Valley Authority of 1933 is perhaps the most famous example of this. Other dollars appear to indirectly crowd out private firms by hiring away employees and the like. But we suspect that a third and potentially quite strong effect is the uncertainty that is created by government involvement.
Stimulus Surprise: Companies Retrench When Government Spends — HBS Working Knowledge
Maybe we can get the government to stop spending trillions of dollars to help us now.