Sunday, 22 May 2011
Economics Prof thinks public spending makes us worse off.
This is the fourth instalment of my “Economics Profs off the rails” series!
Dr Richard M. Ebeling is Professor of Economics at Northwood University. He presented his testimony to the House of Representatives Subcommittee on Domestic Monetary Policy and Technology, on 11th May 2011.
In the third paragraph he claims that, “Every dollar borrowed by the United States government, and the real resources that dollar represents in the market place, is a dollar of real resources not available for use in private sector investment, capital formation, consumer spending, and therefore increases and improvements in the quality and standard of living of the American people.”
Just one problem here, professor. The “American people” (like people in every democracy) actually VOTE to have government confiscate a portion of their income and devote the money to law enforcement, schools, etc. That is, the people think they are better off – not worse off – with government taking a slice of GDP.
If the “learned” professor cannot get that one right, I don’t see any point in reading beyond his third paragraph.