Thursday, January 08, 2009

Cato on Obama's stimulus boondoggle

Cato explains that Obama's plans to borrow money for tax rebates and infrastructure projects are proven failed means of stimulating the economy. The author suggests payroll tax rate cuts, lowering the corporate tax rate, and guaranteeing no increase in the capital gains tax as cheaper and effective policies to stimulate the economy.

Cato examines the deficit numbers for 2009 and 2010 and explains that deficit spending doesn't help the economy.

Cato explodes the myth that government creates jobs. Since all wealth comes from the private sector, government can only transfer jobs from the private to the public sector. Because of corruption, overpaid government workers, and lost resources from the private sector, the private sector always loses more jobs than government transfers.

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