Not all monetary spending is equal. Economic prosperity requires wise entrepreneurship. If spending is funded by voluntary saving and invested according to profit and loss considerations, it tends to be productive and hence, add to our prosperity. If spending, however, is funded by coercion and apart from economic calculation, scarce goods are wasted, and the result is relative impoverishment, prolonged recession, and unemployment.
Thursday, August 30, 2012
Who Spends Wisest?
My latest op-ed has been published on Forbes.com. "Since Monetary Spending is Unequal, Who Spends Wisest?" explains one reason why government spending and monetary inflation are not roads to prosperity. My main point is that, because of the existential fact of scarcity,