Thursday, October 15, 2009

I Sent This Letter To The Dallas Morning News Today

Dear Editors:'s claim that "stimulus funds have saved or created about 1,100 jobs in Texas" is economic fallacy.

If I were to confiscate people's earnings in Fort Worth and then give the money to people in Dallas, no jobs are created.  Even if my new friends spend the unearned money on construction projects, the opportunity cost of the muggings in Fort Worth creates a net loss to the economy, particularly in the case cited in your article, where a middleman drains the coffers before the redistribution and a bureaucrat instead of an entrepreneur decides where to redistribute the money.

Those behind are either victims or perpetrators of the Broken Window fallacy.

Risking assets to satisfy desire creates jobs and wealth. Transferring money only transfers jobs while evaporating wealth.

                 Tim Lebsack
                 Libertarian Party of Dallas County




1 comment:


    Texas loses 44,700 jobs in September and jobless rate rises to 8.2 percent