In my commentary today, I tackle the idea of “economic development” spending as a stimulus for economic growth, and contrast that with lower taxes. More detailed analysis of this data can be found here.
The Allegheny Institute wrote on the effect of Pennsylvania’s economic development spending earlier this year.
Brian Riedl’s recent backgrounder for the Heritage Foundation offers a synopsis of why government spending doesn’t “stimulate” the economy, and refers to several studies that more spending (including “stimulus” packages) undermine economic growth.
Tyler Cowen has a good editorial in the New York Times on the failure of the New Deal to end the Great Depression:
Our current downturn will end as well someday, and, as in the â€™30s, the recovery will probably come for reasons that have little to do with most policy initiatives.