Monday, June 6, 2016

Governments Working Hard To Stimulate Nothing

Unless fiscal policy reduces taxes and regulation, all the spending in the world won't do much. Society will refuse to spend and investment as long as discretionary incomes continue contracting under the weight of misguided socialistic spending. If the government truly wanted to create jobs and economic growth, they'd let the private sector, the productive side of the economy, keep more of the money they earn. The unexpected rise of Bernie Sanders, however, suggests the public still doesn't get it. The getting process usually comes after a crash and burn episode.

Headline: Global governments boosting spending at fastest rate since 2009

The world's governments are stepping up to the plate to relieve monetary policymakers of some of the burden of supporting persistently slow-growth economies, according to HSBC Holdings PLC.

Around the world, government spending is poised to grow by more in 2016 than any year since 2009, when fiscal authorities embarked upon a coordinated plan of boosting expenditures to deal with the damage wrought by the financial crisis.



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