Quote for the Day on Stimulus Spending
Yesterday, I tweeted Dan Mitchell’s blog post, which in turn cited Richard Rahn’s article on the evidence of “stimulus spending” vs. limited government on growing the economy. Mitchell has since responded to government-spending defenders – post one; post two – the second contains my “quote for the day.”
Thompson also writes that, “Our unemployment picture is a little more complicated than ‘Oh my god, Obama is killing jobs by taking over the states’ Medicaid burden!’” Since I’m not aware of anybody who’s made that argument, I’m not sure how to respond. That being said, jobs will be killed by having Washington take over state Medicaid budgets. Such a move would lead to a net increase in the burden of government spending, and that additional spending would divert resources from the productive sector of the economy.