Thankfully, not all European leaders are politically akin to Independent (and avowed socialist) Sen. Bernie Sanders of Vermont. Finland’s Prime Minister Alexander Stubb criticized how many of his neighboring governments rely of government to stimulate the economy, rather than keeping that money in the private sector.
From Dan Mitchell International Liberty:
He explained that the emperor of Keynesian economicshas no clothes.
As reported by Le Monde (and translated by Open Europe), here’s what Alexander Stubb said when asked whether European governments should try to “stimulate” their economies with more spending.
We need to put an end to illusions: it’s not the public sector that creates jobs. To believe that injecting billions of euros [into the economy] is the key to growth is an idea of the past.
You don’t make a nation richer by taking money from one pocket and putting it in another pocket.
Particularly when the net effect is to redistribute funds from the productive sector to the government.
I’m glad Mr. Stubb has figured this out. I just with some American politicians would look at the evidence and reach similarly wise conclusions.
Mitchell also included some funny — and pertinent — cartoons, found below:
Read more at International Liberty.