Friday, June 5, 2015

Why Would Anybody Want To Shrink The Government?

Comment on: Economic arguments as stalking horses


Basically, he's saying that he adopts an anti-Keynesian stance not because be thinks stimulus actually fails to fight recessions, but because he wants to shrink the size of the government in the long term.

Why does he want to shrink the government though? It's because he doesn't trust the government's allocation decisions. But what's stimulus? Just another allocation decision by the government.

If the government is good at fighting recessions... then it's good at allocating resources. And if the government is good at allocating resources... then why would anybody want to shrink it?

Might want to read the parable of the talents again.

Would crucifying liberals stimulate the economy? Sure. But it would also massively violate Quiggin's Implied Rule of Economics (QIRE).

Pay attention. Violating QIRE is the cause of recessions/depressions. Stop violating QIRE and there will never be any need to stimulate the economy.

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