By Dr Craig Wright, as edited and published by his editors on craigwright.net.
Government “stimulation” basically slows change. This takes funds from more productive sectors, and redirects it into less productive ones. It maintains the status quo at the expense of slowed growth and future debt.
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The last 100 years have been a period of rapid change. ALL decades experienced innovative development and creative destruction. The government response has been to promote the existing corporations that once were great and no longer have the innovative culture that caused them to exist in the first place.
This of course is politics responding over economics. Politicians like large government. They can pork-barrel existing (and politically supportive) firms over newer ones which are likely to change existing economic and cultural dynamics. The problem is that this always fails in the long term, but with the result that we have lower net wealth and productivity in the short term.
Keynes did decry the long term, for in politics, everything is the short term economically.
First published on craigwright.net on 12 November 2018. This copy was recovered from the Internet Archive snapshot of 4 December 2023. Republished on BSVSearch with Dr Wright's permission - about this archive.