MaggieMae
Reality bits
- Apr 3, 2009
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- #141
There are laws of economics, and the fact that we have a mixed economy doesn't change those laws it simply attempts to break them.
What are the "laws"?? Are you sure you don't mean "rules"??
By laws I mean facts that do not change. One law of economics is that governments do not create wealth. It's impossible to take capital from the productive sector of society, put it where you think it should go instead, and generate any kind of real wealth. Only the market can accurately decide where resources should go in any kind of rational manner. If the government decides that there needs to be a business that the market is not providing for on its own, and then uses taxpayer money to create that business then they're not creating wealth. That business would not survive on its own in the private market because there's not enough demand for it. The economy would be better off if that business was not wasting resources for a product or service that people do not want, and if the government was not taxing them to force this business upon them.
Not if that capital is reinvested in the private sector in order to produce even more wealth. It actually works the same way stock you might own in your company that gets reinvested by management elsewhere in order to enhance the business AND your own stock value.
[Corrected from "public"]
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