Friday, March 4, 2011

A Debatable Chart

Not much to say here. Simply put:
Red Line= Passage of the Stimulus Bill
Green Line= Extension of Bush Tax Cuts

Feel free to form your on conclusions.....

1 comment:

Unknown said...

Here are a few quotes from Ludwig von Mises that might help to shed some light on the chart.

"People work only when they value the return of labor higher than the decrease in satisfaction brought about by the curtailment of leisure. To work involves disutility."

i.e. as long as the government extends unemployment benefits, other welfare, and raises taxes, people are not going to be motivated to work.

"Labor is the most scarce of all primary means of production because it is in this restricted sense nonspecific and because every variety of production requires the expenditure of labor. Thus the scarcity of the other primary means of production -- i.e., the nonhuman means of production supplied by nature--becomes for acting man a scarcity of those primary material means of production whose utilization requires the smallest expenditure of labor. It is the supply of labor available that determines to what an extent the factor nature in each of its varieties can be exploited for the satisfaction of needs."

i.e. A minimum wage and government intervention cause unemployment.

And I will leave you with one of my favorite quotes by Murray Rothbard which I have posted several times:

"All business spending is investment because it goes toward increasing the production of goods that will eventually be sold to consumers. But government spending is simply consumer spending for the benefit of the income, and for the whims and values, of government's politicians and bureaucrats. Taxation and government spending siphon social resources away from productive consumers who earn the money they receive, and away from their private consumption and saving, and toward consumption expenditure by unproductive politicians, bureaucrats, and their followers and subsidies."

i.e. If you put more money in the hands of the entrepreneurs and less in the hands of government (tax cuts), you get more production which benefits society as a whole.