“Spend more money!” That’s what economists such as Nobel prize winner Paul Krugman, The Financial Times’ lead economist Martin Wolf, and Japan expert Richard Koo are whispering in Obama’s ear. Spending supposedly boosts sales and creates jobs.
But if you’re just taking money from one pocket and putting it another, what’s the point? There is no net increase in spending power. Still, economists argue that the rich don’t spend their money; they save it! And we know what an awful thing saving is…
Taking money from ‘the rich’ actually retards a real economic renaissance. The rich are the ones who consume the most…because they have the most to spend. More importantly, they’re the ones who fund the small businesses that do the hiring. Banks won’t take a chance. It’s the relatives…and ‘the rich’ themselves…who put their money on the line.
Either someone forgot to explain this to the Obama administration or they just don’t care. In Washington, politics trumps economics every time…
The politicians are takers. Their idea is to spread the wealth around by taking it from those who have it and giving it to their lobbyist friends and political constituents. But the wealth won't last forever without replenishment from the victims who have no incentive to provide more loot for government to plunder, no reason to grow their businesses or create new ones.
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