Redistribution, just wrong.
Back in 2010, then-House Speaker Nancy Pelosi actually claimed that paying people not to work would be good for the economy.
Wow, that’s almost as bizarre as Paul Krugman’s assertion that war is good for growth.
Professor Dorfman of the University of Georgia remembers Pelosi’s surreal moment and cites it in his column in Forbes, which debunks the Keynesian assertion that handouts create growth by giving recipients money to spend.
It is true, of course, that the people getting goodies from the government will spend that money, which also means more money for the merchants they patronize.
People who favor redistribution for other purposes often try to convince others to support them on the grounds that their favored policies will also create economic growth. …let’s review the story as told by those in favor of redistribution. When the government provides benefits to people without much income or spending power…
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