Saturday, May 19, 2012

"Growth" Is NOT Equal to Government Spending

For weeks the lame-stream media has been going on about how Europe (and now the G8) are not in favor of austerity = balanced budgets. They want "growth."

Except what the political class wants is the status quo. Runaway spending, no worries about budgets. Whatever. That is NOT growth.

If you want growth, you would cut regulations and restriction on business. Not invite wholesale rape of the environment, but get rid of the insane bureaucracy. And it is insane. Of course that isn't really what the Left in Europe or in America want. They don't want business to grow. They want government to grow.

If out-of-control government spending resulted in real economic growth, then Greece would look more like Germany. And the same holds true for Spain and Italy.

2 comments:

Chris Dale said...

hey dude spain had a budget surplus prior to economic downturn...decrease in revenues due to lower economic activity caused the lack of government funds... it seems like You don't know what your talking about

Zendo Deb said...

Spain had a budget surplus because they had a fairly good economy. (Seems like a lot of it was fueled by excess credit... but we can debate that another time. And they were not alone.)

The point of the post is, that everyone from Obama to the Prime Minister of Greece is saying they need to spend more government money - that they don't have so they will need to borrow that money - in order to get back to prosperity.

But prosperity isn't the result of government spending. Government budgetary surpluses are the result of prosperity = lots of business activity.

Dude. Maybe you should read the post again. (After the buzz has worn off.)