From The Rational Capitalist:
Proponents of the “stimulus” plan claim explicitly or implicitly that the government can take other people’s money, spend it, and thereby cause a “stimulating” effect on the economy.
First, I’m not sure what they mean by “stimulating”. Do they mean that prices will rise? But if prices rise, then we all get poorer by definition so it can’t mean that. Will prices go down so that we can all afford more? Not really since spending lots of money on consumer goods rarely results in lower prices.
The only cause that results in economic benefit in terms of standard of living is an increase in productivity. Productivity allows you to make more with less effort and therefore increases real wages, i.e., increases what you can purchase with the same amount of work. Is this what they mean by “stimulus”? Do they mean that stealing people’s money and spending it will cause an increase in productivity? I would like a proponent of the stimulus plan to explain exactly how that process will work? Can Obama explain it? Can Nancy Pelosi explain it? Can the Republican’s that back it explain it?
If it is indeed true that the government can rob people of their money, spend it, and the effect will be a net benefit to the victims then why don’t we just legalize robbery? Everyone could steal from everyone else and spend the money they obtain in the theft. We could all be stimulated and cut out the middleman?
The government is making themselves very bad publicity.