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Discussion: (7 comments)

  1. Nickolaus

    “Longer-term, smaller government — provided that there is enough spending on public goods like defense and basic research — is good for the economy.”

    What’s “enough” spending on defense and basic research? And in the unlikely case that you have a number, how did you come up with it?

  2. I would like our government (at all levels) to STOP buying foreign made goods and services. Even at the reduced level, that would help the US economy. No more buying bridges build in China, no more paying Swiss/German/French firms to study a HS rail system to be built in China and installed here by Chinese.

    Second, maybe we could stop or at least reduce the hundreds of millions we give to corrupt governments around the world. I’m not even a fan of the hundreds of millions we give to non-corrupt governments (Ha, its a trick statement – all governments are corrupt to some extent).

    I’m for defense spending because most of that stuff is made right here in the USA.

    1. Nickolaus

      Nonsense, poopypants. You are aware that mercantilism has been debunked many times over, right? Every dollar that the government saves by buying cheaper from another country is one less dollar that it has to tax from its citizens.

      You don’t create prosperity by spending, no matter where it is made. Half of your post assumes this fallacy.

  3. re: “the sharpest year-to-year contraction in real federal outlays since Ike’s Korean War demobilization — continues and is no doubt taking some toll on private-sector growth”

    It is not clear that is the case. Obviously it may hurt some companies, but it benefits others, likely even more. Obviously it prevents the government from borrowing even more and crowding out more efficient private uses of capital. I know some liberals try to pretend crowding out doesn’t exist. However an investor can only do one of a limited set of things with each $ they have to invest: lend it to the government, invest it in a private business in the US, invest it outside the US, or stuff it in a mattress. If the government doesn’t borrow a $, it is doubtful it is stuffed into a mattress, and it seems more likely most is invested inside the US rather than outside the US.

  4. mesa econoguy

    What???

    2.5% is astounding growth, for a Euro-social democracy.

    THE ANSWER IS MORE GOVERNMENT SPENDING, IMMEDIATELY

    If we don’t spend more now, we might not hit 1.5% (the cap on socialist economies) for 2013.

    By the way, I should probably mention again that we are locked into 1.5% GDP from here to eternity.

    WE loves us some free welfare…..

    1. Don’t ya just love those federal government spending cuts?

      Ha! Ha! Ha! Ha!

  5. Changing the patients ‘diet’ is an option:
    http://thefaintofheart.wordpress.com/2013/04/27/x-raying-the-patient/

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