Sunday, April 5, 2009

A Penny Spent Is a Penny Earned?

In this article, Peter Schiff points out that at the recent G20 summit in London, President Obama told Americans that their fears regarding the economy should not interfere with their spending. According to Schiff, here was the sage advice offered by Obama:

We must spend now as an investment for the future.

Those of you who are familiar with the Austrian School of economics know that spending on consumption is the exact opposite of an investment for the future. This destructive Keynesian fallacy that long-term economic prosperity rests on a foundation of consumption rather than saving has got to be put to rest once and for all.

We truly do exist in an Orwellian world when the most powerful and highly respected people stand before us and boldly claim that black is white, up is down, and two plus two equals five.
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1 comment:

  1. BrianApril 8, 2009 at 11:55 PM

    This has been going on for a long time. Republican and Democrat administrations alike have promoted consumer spending as the cure for what ails our economy. Anyone who looks at the results cannot help but see how wrong both sides of the aisle have been all these years.

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