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Economist Brian Wesbury argues that more government spending will not improve the economy.
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Brian Wesbury companies from first trust advises.
So what do you think food stamps are good stimulation.
For the economy what do you say.
-- -- as you know store where they're getting this from is these idea of a multiplier right so if the government spends a dollar.
What people will say is it turns into a dollars thirty -- -- dollar forty Euro dollar seventy in economic activity.
And I I couldn't disagree with this more if by the way -- -- -- big sense of the world.
If this were true if if the government could magically turn a dollar in some more economic activity then that.
Then then there should be no.
Poverty anywhere in the world because that's really easy right just spend spend spend it and everybody's rich but.
Clearly we know the bigger the government is the slower the economy grows the less dynamic in economy as.
And note and the fewer jobs they create so in fact I think that's the problem with the US today.
I just want to remind everybody that that program with the Mexican government that started back in 2004.
This is not a recent development because -- -- straight not one out.
-- Steny -- also said.
That it was unemployment.
Insurance unemployment up payment at that benefits.
That I also is stimulative and we hope that from Nancy Pelosi.
About a year or so ago when she -- -- it's -- that that this is what you get bang for the -- I'm sure you get a stamp not want to.
Yet it's the same argument -- -- At least -- let me go just a little bit different direction you know I personally I believe that we are our brother's keeper.
We're supposed to take care of widows and orphans I believe that we should have programs that help the people -- -- rarely.
In times of real need that's what this is about it's not about economic stimulus but what's happened is.
That these programs have become permanent and all you have to do.
Is go over to Europe and you find a permanent.
-- level of unemployment that's way higher than we have here in the United States.
And it did supported.
By the government and what happens then is that people are no longer productive -- -- even people they could work they could have a job.
They they they find out that they don't really need to work my -- and this drags in the economy down this is the thing that kills economies over time did you get it kills people.
Well I think there's been an attempt at fundamental change in November.
Will determine whether or not America.
Wants to go toward more European social welfare system.
Or work toward a more capitalist free market system that's what I think the November election is all about and so will find out whether it's.
Whether America has really changed but there's no doubt.
Today the government is bigger than it has ever been ever if you take defense spending out of the budget we are spending.
More as a share of GDP than we've ever spent in the history of the United States.
And that's a fundamental change.
And M and and that brings it back just real quickly on the economy -- -- -- America has always been a thorough -- right you know entrepreneurs and new inventions technology.
All those technology companies with great earnings were thoroughbreds but but but our horse today are ray source we have a 250.
Pound.
Jockey sitting on it.
-- that's the government and you can't win the race we we have got.
To put that jockey on a diet that's a very good analogy and very interesting Brian west res thanks as always for -- -- again appreciate -- a thank you.
The present you -- -- on the column.
