How Government Borrowing (and Corrupt Government Spending) "Crowds Out" Business Expansions. Government Destroys Jobs. It NEVER Creates ANY Jobs.

Posted by freedomforall 1 year, 6 months ago to Government
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Excerpt:
"imagine being a businessman looking for a small business loan, perhaps to finance expansion or fund the season’s agricultural harvest.

But then you find that there’s no more money… or only very expensive, high-interest loans available… because the politicians had already borrowed all the money in the financial system.

Economists call this the ‘Crowding Out’ effect, i.e. what happens when someone borrows so much money that there’s very little capital left over for everyone else.

In modern times that ‘someone’ is typically the government, i.e. government borrowing is so extreme that they monopolize all the liquidity in the financial system, thus causing interest rates to rise and ‘crowding out’ the private sector from accessing capital.

And we’re starting to see the Crowding Out effect in our daily lives."
SOURCE URL: https://www.sovereignman.com/trends/weve-waited-nearly-15-years-for-this-146858/


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  • Posted by mccannon01 1 year, 6 months ago
    "It NEVER Creates ANY Jobs." Well... expanding bureaucracies create lots of jobs, they just don't produce any value added. For example, if we are "blessed" with 80,000 more I-R-S agents, then that's lots of high paying jobs where NOTHING is produced.
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