A great article by Ed Lazear, who I heard talk at the Economic Club of Phoenix, about the effect of increased spending by the government.

I totally agree with him, and this is something which is never addressed by the government. People who favor the entitlements and government programs to improve their lives don’t realize the long term consequences:

For example, were we to tax above the 18% tax-to-GDP ratio over the next 25 years, GDP per capita in 2035 would be about 50% less than if we were to tax below the 18% ratio.

That’s the difference between making $40,000 and $60,000. That’s huge. And remember that that’s only with a binary variable- if we go farther down, we will have even higher growth.

The less fortunate in our population like to think they are being exploited when the government doesn’t redistribute wealth in their direction; the fact is, they are selfishly taking advantage of future progress for their own purposes.