Smashing a Fallacy
Someone sent a message via my Facebook page in which he noted something a friend had told him:
Demand creates jobs. How do we increase demand? We provide assistance where needed to create economic activity where the private sector won’t. We INVEST it in our infrastructure instead of throwing it away in tax cuts. We provide assistance to those in need. Food stamps and Unemployment Compensation, which I am sure you oppose, are two of the best economic stimulants and are backed up by real data. Every dollar spent on food stamps generates about $1.51 in economic activity. Tax cuts are one of the worst returns, creating a net loss in return.
On the Peter Schiff Show tomorrow, which I’m hosting again, we’ll be taking this common string of fallacies apart piece by piece. Tune in! No subscription required.