The basic idea that if you increase government spending or you cut people's taxes that stimulates the economy and lowers the unemployment rate, is a very widely accepted idea. It's in every economics textbook, that's what we teach our undergraduates, and I certainly try to teach them the truth.
I think that when we look out with our underfunded liabilities and our national debt over $14 trillion, I think if we are part of that movement to get our government spending under control, I think that would be a tremendous legacy to leave.
MoveOn loves government. It remains enamored of government spending as fuel for its liberal agenda; and anything that threatens to close that spigot in any degree is perceived as a dire threat - worthy of Chicken-Little warnings that the sky is going to fall.
If you have a private firm and you spend a ton of money to pay employees, but what you produce is a flop, there will be no value to GDP. But government spending all gets counted as contributing to economic growth. That's why in the early days of creating these measurements, some people didn't want to count government spending.
For more than forty years, the United States Congress has shamelessly used payroll taxes intended for Social Security to fund big government spending.
Clinton's successor in the White House, George W. Bush, was committed to expanding government spending for faith-based initiatives.
To win elections, politicians have promised practically endless government spending and covered up the cost, leaving generations of taxpayers obligated to pay off the debt. That's wrong, but neither the U.S. nor Europe has a plan to stop it.
