Brian Gongol Show on WHO Radio - October 25, 2009
Among other things tonight, we got talking about some goofy things like gravy and school lunches. But we also managed to share some important subjects, too -- like the inefficiency of a 10% across-the-board spending cut by the state government. Don't get me wrong: The state needs to cut spending, and has needed to cut spending for some time. But some government services are more essential than others, and the budget needs to reflect those differences in importance. If we can pick which "essential services" remain available during emergencies like blizzards, we should be able to do the same during budgetary emergencies, too.
It was good news to read recently that economists have figured out that government's "spending mulitplier" effect is actually nonexistent. Lots of people push lots of government spending with promises that the spending will somehow "create" lots of private spending. It's always sounded like hogwash, and it's good to see that the evidence actually proves it.