Mount Virtus

"Happy to come back to Michigan, but I miss the mountains!"

Ben on Social Media

  • Facebook
  • LinkedIn
  • RSS
  • Twitter
  • YouTube
  • Home
  • About Ben
  • Mount Virtus?
  • Writer / Editor For Hire
  • What I’m Thankful For
  • Colorado Ballot Reviews
    • Colorado Ballot 2008
    • Colorado Ballot 2010
    • Colorado Ballot 2012
  • Archives
  • Passion and Purpose:
    The Rise & Fall of Al Gansee
  • Mary and Jacob: From the Forgotten Dust
  • The Westfield Gardener
Home General Economic “Stimulus” = Impatient Politics Trumping Good Policy

1/18/2008 By Ben 1 Comment

Economic “Stimulus” = Impatient Politics Trumping Good Policy

Update: It’s good to see Michael at Best Destiny and Phil at Clear Commentary thinking along similar lines.

With all the news of economic slowdown nearing fevered pitch, some Americans will like the sound of a few hundred extra bucks in their pockets. Hey, it sounds good to me, too. Except it’s not a tax break in the sense of getting to keep more of your own hard-earned money. It’s plain old wealth redistribution, as explained by George Mason economist Russell Roberts in this piece (HT Rossputin):

The money has to come from somewhere. If you raise taxes to fund the plan, the people who are taxed are poorer and they’ll spend less. If you borrow money to fund the plan, the people who buy the government bonds have less money to spend and that offsets the stimulus. It’s like taking a bucket of water from the deep end of a pool and dumping it into the shallow end. Funny thing—the water in the shallow end doesn’t get any deeper.

And even the people who get the money often save more of it than they spend.

That’s why stimulus schemes based on giving people money have a poor track record of energizing the economy. Usually, the only thing that gets stimulated is a politician’s approval rating.

We’ve got a lot of politicians making pie-in-the-sky promises, and even a few plausible-sounding ones, like doling out a few hundred bucks of revenue to everyone will kickstart the economy.

It would be short-term relief, yes.

But certainly not good long-term economic policy (which, of course, has very little to do with getting elected).

Filed Under: General, National Politics Tagged With: Economic policy, Russell Roberts, stimulus package, wealth redistribution

Trackbacks

  1. Xpatriated Texan » Tell me about “Economic Stimulus” says:
    1/18/2008 at 11:44 pm

    […] wants to know where the money comes from for tax breaks and borrowing (note: where did it come from for the entire Bush Presidency?): […]

Leave a Reply

You must be logged in to post a comment.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Inside

  • About Ben
  • Archives
  • Colorado Ballot Reviews
    • Colorado Ballot 2008
    • Colorado Ballot 2010
    • Colorado Ballot 2012
    • Colorado Ballot 2014
  • Mary and Jacob: From the Forgotten Dust
  • Mount Virtus?
  • Passion and Purpose:
    The Rise & Fall of Al Gansee
  • The Westfield Gardener
  • What I’m Thankful For
  • Writer / Editor For Hire

About Me

Ben DeGrow
Grateful and growing Christian, devoted husband and father of 3, public policy analyst, returned to Michigan by way of Colorado, conservative writer, lifelong learner, Detroit Tigers fan.

Recent Posts

  • AI-Enhanced Cyberbullying: The Dark Side of Teen Innovation
  • My Baker’s Dozen of Top 2023 Reads
  • Common Learning Disabilities in Children
  • Tips to Teach Kids to Set and Achieve Goals
  • The Christmas Music Countdown You’ve Been Looking For: 2022 Edition

Colorado News

  • Colorado Senate News
  • Complete Colorado
  • Independence Institute
  • Loveland Politics
  • The Colorado Observer

National News and Politics

  • Drudge Report
  • Hot Air
  • National Review
  • Politico
  • Real Clear Politics
  • Reason
  • The Washington Times
  • TownHall
  • Wall Street Journal
  • Weekly Standard
  • World Magazine

Blogs Extraordinaire

  • American Thinker
  • David Harsanyi’s Blog
  • E!! The True Conservative Story
  • EIA Intercepts
  • Evangelical Outpost
  • Hugh Hewitt
  • Instapundit
  • LaShawn Barber
  • Lileks
  • Little Green Footballs
  • Michelle Malkin
  • NRO's The Corner
  • Power Line
  • Red State

Completing the Blogroll

  • Alarming News
  • Black Five
  • Blogs of War
  • Eduwonk
  • Flypaper
  • Fraters Libertas
  • Historical Conversations
  • IMAO
  • Jay P. Greene
  • Mike Anderson
  • Mullings
  • Professor Bainbridge
  • Right Thinking
  • Right Wing News
  • Right Wing Nuthouse
  • Shot in the Dark
  • Talking Points Memo
  • Virginia Postrel
  • Volokh Conspiracy

Christian Commentary et al.

  • Kevin Pierpont
  • Sharper Iron

Conservative and GOP Sites

  • Backbone America
  • Cal Thomas
  • Colorado Republican Party
  • Colorado Republican Study Committee
  • Dennis Prager
  • Denver Metro Young Republicans
  • Free Republic
  • Heritage Foundation
  • Jefferson County Republican Party
  • Mackinac Center for Public Policy
  • Mark Steyn
  • Michael Medved
  • Rush Limbaugh

Colorado Blogs

  • American Kestrel
  • Bob Agard
  • Colorado Charter Schools
  • Colorado Peak Politics
  • Colorado Pols
  • Colorado Right
  • Conservative Libertarian Outpost
  • Coyote Gulch
  • Ed Is Watching
  • Free Colorado
  • Jeff Crank Show
  • Mark Hillman
  • Patient Power
  • PirateBallerina
  • Protein Wisdom
  • Reagan Girl
  • Rocky Mountain Alliance 1.0 (Archive)
  • Rocky Mountain Alliance 2.0 (Archive)
  • Rossputin
  • Stop the ACLU Blog
  • The Spot (Denver Post)
  • We Stand Firm

Other Sites

  • Technorati
  • Word Press

Rocky Mountain Alliance 2.0

  • Reclaim the Blue
  • The Business Word
  • The Daily Blogster
  • View from a Height

To Contact Me:
bendegrow-at-gmail.com

Copyright © 2025 RSS Feed · WordPress · Log in