Friday, May 28, 2010

Government Spending May Hurt the Private Sector - Business - The Atlantic

Government Spending May Hurt the Private Sector - Business - The Atlantic

This article takes advantage of the natural experiment provided by the ascension of a local member of Congress to the chairmanship of a spending committee. They find that the higher levels of earmark spending actually decrease private levels of R and D, investment and sales. There appears to be a resource curse even for government spending.