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Wednesday, December 9, 2009

Government Is Not An Investor

A centralized government is never better at recognizing profitable investments than the private sector. Government is not an investor. Investment is defined as 'taking money that you EARNED and then using that money to create more money'. Government does not earn money. Government can only redistribute money that it takes from citizens.

Government cannot amplify the power of wealth in an economy by taking it from one citizen and giving it to another, because government must support the costs of its own existence. Wealth shrinks in the hands of government. Government intervention slows down the real economy and misallocates funds because a central government can never anticipate the needs of an economy better than the people who are living in that economy can.

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