Bigger Government is no Stimulus

Dan Mitchell of the Cato Institute has a great video on why government spending has, and will, fail to “stimulate” the economy.

The evidence detailed by Mitchell is confirmed when examining states – those that spend more on “economic development” have slower growth than those spending less. However, states with lower tax rates (and states that have cut taxes recently) have stronger economies.

Related Posts:

Cutting Taxes Better Stimulus than Government Spending
The Fallacy That Government Creates Jobs
Deficit spending, taxes, and economic stimulus
Why Permanent Tax Cuts Are the Best Stimulus
Why government spending is no economic stimulus