☕️ John Tamny today:
Considering debt, it should be said up front that realistically all government spending is debt. Governments can only spend to the extent that they extract resources from the real economy first, at which point debt amounts to an accounting abstraction. A focus on debt misses the real barrier to economic growth, which is government spending itself. As the late Robert Bartley put it in his classic book on the Reagan economic revival, The Seven Fat Years, “The deficit is not a meaningless figure, only a grossly overrated one.” Government spending is the true tax signaling resource consumption by politicians lacking market discipline. The unseen with the spending is all the experimentation (and yes, voluminous failure) that is never pursued by market-driven entrepreneurs (cancer cures, transportation innovations, technology advances that would render the internet dated) thanks to government existing as a size consumer of always limited resources.