West Virginia must be rich, right? All that federal money that flows there year after year. Hopefully readers see the obvious flaw, or contradiction.
Government spending saps economic growth, by its very description. Precisely because it signals the central planning of market goods, services and labor by politicians, it’s economically harmful. Only an economist could believe otherwise.
Which requires us to start with first principles of economics that have seemingly been forgotten in the present debate about state and local tax deductions (SALT). Say repeatedly what economists don’t or won’t: government spending is harmful.
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