Government Spending is not a Solution

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"Notwithstanding reports that all economists are now Keynesians and that we all support a big increase in the burden of government, we the undersigned do not believe that more government spending is a way to improve economic performance. More government spending by Hoover and Roosevelt did not pull the U.S. economy out of the Great Depression in the 1930s. More government spending also did not solve Japan's 'lost decade' in the 1990s. As such, it is a triumph of hope over experience to believe that more government spending will help the United States today. To improve the economy, policy makers should focus on reforms that remove impediments to work, saving investment, and production. Lower tax rates and a reduction of the burden of government are the best ways to use fiscal policy to boost growth."
Deux prix nobel : Ed Prescott et Vernon Smith


"We have tried spending money. We are spending more than we have ever spent before and it does not work. And I have just one interest, and if I am wrong somebody else can have my job. I want to see this country prosperous. I want to see people get a job. I want to see people get enough to eat. We have never made good on our promises. I say after eight years of this Administration we have just as much unemployment as when we started and an enormous debt to boot!"
Henry Morgenthau, secrétaire du Trésor,responsable du New Deal, 1939.