Anthony Gregory writes in response to the government spending to get the economy out of the recession:
The major flaw with the theory was summed up by humorist Dave Barry, who once wrote, “See, when the Government spends money, it creates jobs; whereas when the money is left in the hands of Taxpayers, God only knows what they do with it. Bake it into pies, probably. Anything to avoid creating jobs.”
This succinctly summarizes the counter argument to government spending. Honestly, I don’t think it can be said any better.
People on the left have a tendency to forget that rich people spend money. I have on many occasions had to remind them that, unlike scrooge McDuck, rich people don’t actually have pools of cash that they swim around in. In fact, when the rich use their wealth to purchase something ostentatious, they end up providing employment for many people.
Anthony continues:
And there’s the rub. The idea that government spending creates jobs ignores the jobs that are lost in the process. If Americans have more money that represents actual wealth, then jobs will be created and society will become richer. But if the government simply prints the money, effectively reducing the value of the money they already have — or if it takes the money directly through taxation — that money has simply been sent to Washington and back again.
Effectively, the state is taking a large amount of money, charging some kind of ‘fee’, and then returns it back to the people and calls it creating jobs. However, had the state abstained from taking the money, the ‘fee’ they charged, could of been put to better use creating jobs. In this analysis, one might argue that those that support government job creation are willing to pay the government a ‘fee’ so that they can say they helped others.
It’s unclear why those on the left argue in favor of letting the state extract a fee from their funds, when they could directly gives those funds to charity themselves. In so doing they could then feel good about helping others. The only reason I have ever heard was because they couldn’t trust charities. There is something odd speaking generally about the state being more trustworthy then charitable organizations.