Filed Under: Anything Peaceful
Tags: Balanced Budget • deficit spending • Hayek • inflation • mises • recession
TGIF: Inflation as Income Distribution
The Federal Reserve has been pumping hundreds of billions of newly created dollars into “the economy.” Much of that money has been sent to Wall Street to bailout large, struggling firms. But that’s just the beginning. President-elect Obama says that since he needs to “stimulate the economy” we can look forward to trillion-dollar budget deficits for years to come. Even before the financial turmoil began, the deficit had approached $500 billion. (Not to worry, though–Obama says deficit spending will impose “fiscal discipline” in the future.) Of course, when the federal government spends more than it taxes, it has to get the extra money somewhere. Therein lies the treachery.
—A NEW article by Sheldon Richman
Comment by Carl Clegg on 12 January 2009:
Today on CNN reports are surfacing that Obama wants to create 212,000 jobs by forcing digital health records upon us with a potential pricetag of up to $100 billion. Just another example of “stimulating” the economy, “creating” jobs, and of course running up the deficit…not to mention the perils of having the government be the steward of our medical records.