July 19, 2008
Letter to the Editor: Stimulus Package

The Democrats are drafting their own economic stimulus package. I sent this letter to the Washington Post:

In response to Paul Kane's Friday column about the proposed new stimulus package, it may very well be that Senate Democrats are correct and the government needs to act to "kick-start a faltering economy." However, I fear that what will ultimately emerge will not be a package of reforms that will increase economic growth but rather a package of handouts to special interests and favored constituencies. These may lead to a short-run uptick in economic indicators, but a wise person once said that "there is nothing so permanent as a temporary government program." We need to take this insight to heart.

These won't win many political points, but if Senate Democrats are serious about the long-run health of the country, they would do well to revise and eliminate the regulatory burden that chokes off entrepreneurship and experimentation, eliminate barriers on high-skilled immigration, and eliminate some of the well-intentioned but ultimately counterproductive labor market interventions (like the minimum wage) which eliminate opportunities for those who most desperately need them.

Posted by Art Carden at 10:29 AM in Economics

The statesman who should attempt to direct private people in what manner they ought to employ their capitals would not only load himself with a most unnecessary attention, but assume an authority which could safely be trusted, not only to no single person, but to no council or senate whatever, and which would nowhere be so dangerous as in the hands of a man who had folly and presumption enough to fancy himself fit to exercise it. -Adam Smith

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