Further displaying government’s typical ignorance of economics, U.S. Secretary of Agriculture Tom Vilsack recently touted everything from food stamps to funding (read: subsidizing) high-speed internet in rural areas to investment (read: spending) in processing and slaughtering plants as somehow spurring economic growth. This is according to a report originally from CongressDaily.
What this logic fails to acknowledge is that the money government uses to “fund” or “invest” in these initiatives has to come from somewhere. That money is taken from the private economy either through borrowing, inflationary money printing or taxing. Either way, it represents money no longer available to individuals to spend how they best deem fit.
Government all too often tends to believe it is better suited to decide what individuals should spend their money on rather than allowing the individuals to make that choice. It’s unfortunately yet another example of government directing the economy.