Recently there have been a spate of “studies,” press releases and articles about how we all prosper from government pension fund investing and pensioners’ spending. Here’s my pithy response:
Actually, if the Crips and Bloods had good PR departments, they could put out similar and equally accurate “analysis” and press releases:
The titles could read something like this:
“Crips’ Thefts Stimulate Economy.”
“Bloods’ Blood Money Energizes Commerce”
A thief who steals someone else’s money and spends (or, indeed, invests) the funds is doing just as much for the economy as the taxes confiscated (under threat of force) for the benefit of our public employee aristocracy.
It’s just another example of the “Broken Window Fallacy,” the ludicrous but too common premise that breaking windows increases prosperity.
In this case, the assumption is that if I take your money and spend it, that’s much more energizing for the economy than if you get to keep your earnings and spend (or invest) them yourself.