As Government Grew, Private Economy Faltered
Tuesday, June 11, 2002
The latest figures from the Commerce Department
indicate that U.S. gross domestic product grew some 5.6 percent. But
often overlooked is the fact that government is the fastest-growing
component of the economy.
Moreover, Congress has larded up anti-terrorist spending bills with billions of dollars for projects ranging from skating rinks to casino industry bailouts.
So instead of money flowing to entrepreneurs who are good at multiplying wealth, resources are requisitioned by Congress so they can be spent by federal agencies - resources that can come from only three sources: taxes, debt or inflation. The buildup of any one of these funding sources can have influenza virus effects on a capitalistic economy.
Source: Stephen Moore (Cato Institute), "Government Spending Grows Faster than U.S. Private Economy," Investor's Business Daily, June 11, 2002.
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