Do you ever get depressed reading or watching the news or discussing current events with a neighbor or friend? I do sometimes. Maybe the problem is with the source of our information. Optimism doesn’t sell newspapers, get viewers, or win elections.
We’ve been lied to, folks. Things are better than they were 50 years ago. The gold old days weren’t as good as the good now days.
Check out Matt Ridley’s article in the April Reader’s Digest:
Cheer Up! 17 Reasons It’s a Great Time to Be Alive | Reader’s Digest.
“According to the College Board’s Trends in College Pricing 2010, the average cost of undergraduate education at an in-state, four-year, public institution was $16,140 — a 6.1-percent increase from 2009.”
Wow! Who can afford that? No wonder students rack up thousands in debt.
President Obama announced another bailout. It’s not likely to work, but he has to do something besides blame the “previous administration” for the economy.
Here’s why government spending won’t fix the economy: Government money has to come from somewhere.
- Taxes. Taxes come from the economy in the first place, so the net effect of government spending from taxes is zero.
- Borrowing. Sure that puts extra money in the economy, but because of the interest, each dollar spent is worth less than a dollar.
- Printing. Each extra dollar printed reduces the value of all the dollars already in circulation. Thus, each dollar spent is worth less than a dollar.
Government spending doesn’t create new wealth or extra jobs, it just redistributes money from those who pay taxes (or loan the government money) to those who help politicians get elected.