I posted recently on The Corner some fears about the deficit, the squeezing of the great American middle class, and related topics. George Reisman , Emeritus Prof. of Economics at Pepperdine, has some relevant thoughts.
It’s a bit econo-jargony:
“Yes, it is true that the government itself pays wages to some extent. But it is unlikely to do so to the same extent as do business firms. And to whatever extent the additional wage payments it makes out of the proceeds of its securities sales are less than the wage payments that business firms cannot make because of the diversion of part of what would have been their capital funds to the government, total wage payments in the economic system are reduced…”
…which tends to make my eyeballs vibrate, but I think I understand his main point: It’s all the gummint’s fault.