Regarding the letter, “Stimulus efforts are effective”: The writer and Paul Krugman (Nobel Prize winning economist) should take their government stimulus idea to its ultimate conclusion. We would have full employment if all workers were public employees. Only problem with that idea is the question, where does government get its money? The government takes money (in the form of taxes, all taxes are bad, some are necessary) from one person to give it to another person.
The transfer of wealth surely stimulates the person getting the stimulus money but in most cases doesn’t help the person supplying it. There are certain legitimate federal government functions (see Article 1, Sec. 8… U.S. Constitution) that are authorized. Governments do not create any wealth or create any jobs. They have to take it from someone else to do what they do. Sooner or later you “run out of other people’s money”!
The free market is where wealth is created and a portion of that wealth is turned over to government in the form of taxes. The more government spends, less the wealth that is created because there is less money in the private sector to create more wealth. Socialism (think Greece, etc. ) cannot survive without a free market economy. A free market economy can survive and flourish without socialism. We have thousands of years of history on this. Paul Krugman (the Nobel Prize winning economist) is dead wrong and so is the letter writer.
Al Wirta
Sultan
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