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Sat., July 30, 2011

It’s simple economics

I am amazed at the ignorance of economics that is being touted. It is impossible to spend yourself wealthy. The consumption by government is the root cause of decline in our economy. Wealth taken from the productive and consumed may help the nonproductive very temporarily.

In the meantime, that money is gone that should be used to purchase the tools for the industrious citizens to use in production of marketable goods and services. The only way to grow the economy is by the production of marketable goods or services. It cannot be grown by channeling money to nonproductive activities.

If our government actually wants to expand the economy, it needs to stop spending the wealth that could be used for productive pursuits, reduce the unnecessary regulation of business, reduce the hassle of the convoluted business tax codes and allow the entrepreneurial spirit to flourish. When investors are confident the situation is stable, jobs will be created and the economy will grow.

If we want to continue the current level of government spending, regulation and taxation, we will have inflation, an overall loss of productive jobs and a contracting economy with an overall reduction in standard of living.

Dave Miller


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