Government spending is a horrible way to stimulate an economy because it stimulates the growth of a public spending dependent private sector. When the public spending shrinks, the private sector related to it loses its life support. With direct public spending at around 45% how much of a truly private sector do we have left? We have, by the way, been growing our economy by public borrowing and spending for decades. Ever since the phrase "Its the economy stupid".
http://chumly.com/n/a6a597
Wednesday, July 13, 2011
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