If federal spending stimulated the economy, Why Detroit isn't prosperous?
Professors Lauren Cohen, Joshua Coval and Christopher Malloy, of Harvard Business School, have completed a study titled "Do Powerful Politicians Cause Corporate Downsizing?" Based on 40 years of data, they have proven that federal government spending does not stimulate local business spending. The conclusion is the fact that the more federal dollars come into an area the less private sector spending occurs.
Of course since this is a real study, using real history, and truthful analysis of the numbers it will be either ignored or discounted by the liberal press.
But it is plain to see that when the government gets involved, private enterprise is pushed out or leaves for greener pastures, kind of like Green jobs. As Obama gave us the American Recovery & Reinvestment Act of 2009, and investment in greed jobs, BP ceased production of solar cells at its Frederick, Md., plant and laid off 320 of the 430 employees there. This ends all of BP’s solar cell manufacturing in the U.S.
More government in a sector is proven to result in a decrease in private investment in that sector. Look at medical research, how many new developments come from places with government control of healthcare compared to places where the private sector controls healthcare? Obamacare is going to kill medical research and development.
Rodger Hedgecock has a good commentary on this Harvard Study HERE