The Unseen Cost of Government Largesse

Source: Foundation for Economic Education
by Nathan J Richendollar

“Conservatives and libertarians rightly decry the rapidly-expanding national debt as an embarrassment, a threat to the nation, a root cause of inflation (as the Federal Reserve must expand its balance sheet to purchase the Treasuries that finance these huge deficits, as happened most clearly in the pandemic’s peak), and a promise of higher future taxes. While all these are accurate observations, one effect of massive government spending and deficits is often overlooked in the standard conservative critique: the forgone private investment of capital and therefore forgone economic growth, often termed the ‘crowding out effect.'” (01/24/23)

https://fee.org/articles/the-unseen-costs-of-government-largesse/