The Spending Cut Lie

One of the most ridiculous lies politicians get away with is that massive government spending cuts will create jobs. Governments spend money on salaries of employees, or contract out services. Those contractors in turn spend the money on salaries or services. In the end, it all gets spend for somebody’s wage or profit. If you have a massive spending cut, there is no money to pay all those people. They have to be laid off. Both spending cuts and jobs are highly desirable, but you have to choose. You if you cut spending, you automatically also cut jobs. If you want the government to directly create jobs, it means increased spending.

~ Roedy (1948-02-04 age:69)