Daily Dose

The Foundation

“I am for doing good to the poor, but I differ in opinion of the means. I think the best way of doing good to the poor, is not making them easy in poverty, but leading or driving them out of it. In my youth I traveled much, and I observed in different countries, that the more public provisions were made for the poor, the less they provided for themselves, and of course became poorer. And, on the contrary, the less was done for them, the more they did for themselves, and became richer.” – Benjamin Franklin, 1766

What did he/she say?

“Abraham Lincoln once asked an audience how many legs a dog has, if you called the tail a leg? When the audience said “five,” Lincoln corrected them, saying that the answer was four. “The fact that you call a tail a leg does not make it a leg.”

That same principle applies today. The fact that politicians call something a “stimulus” does not make it a stimulus. The fact that they call something a “jobs bill” does not mean there will be more jobs.

What have been the actual consequences of all the hundreds of billions of dollars that the government has spent? The idea behind the spending is that it will cause investors to invest, lenders to lend and employers to employ.

That was called “pump priming.” To get a pump going, people put a little water into it, so that the pump will start pumping out a lot of water. In other words, government money alone was never supposed to restore the economy by itself. It was supposed to get the private sector spending, lending, investing and employing.

The question is: Is that what has actually happened?” – Thomas Sowell, Stimulus or Sedative?

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