The Usual Rap Is....
8 February 2008
The Editor, New York Times
229 West 43rd St.
New York, NY 10036
To the Editor:
Paul Krugman says that "The usual rap against public spending as a form of economic stimulus is that it takes too long to get going" ("A Long Story," February 8). Not so. The usual rap against public spending as a form of economic stimulus is that it reduces private spending. Every dollar the government spends is taken from private hands (either directly through taxation or borrowing, or indirectly through inflation).
Sincerely,
Donald J. Boudreaux
Chairman, Department of Economics
George Mason University
Fairfax, VA 22030
The Editor, New York Times
229 West 43rd St.
New York, NY 10036
To the Editor:
Paul Krugman says that "The usual rap against public spending as a form of economic stimulus is that it takes too long to get going" ("A Long Story," February 8). Not so. The usual rap against public spending as a form of economic stimulus is that it reduces private spending. Every dollar the government spends is taken from private hands (either directly through taxation or borrowing, or indirectly through inflation).
Sincerely,
Donald J. Boudreaux
Chairman, Department of Economics
George Mason University
Fairfax, VA 22030
Posted by Don Boudreaux on
Tuesday July 1, 2008 at 6:23am