Increased government spending can provide a temporary stimulus to demand and output but in the longer run higher levels of government spending crowd out private investment or require higher taxes that weaken growth by reducing incentives to save, invest, innovate, and work. (Martin Feldstein)

Increased government spending can provide a temporary stimulus to demand and output but in the longer run higher levels of government spending crowd out private investment or require higher taxes that weaken growth by reducing incentives to save, invest, innovate, and work.

Martin Feldstein

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crowd demand government growth invest investment longer output private reducing run save spending stimulus tax temporary work higher

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Since taking office, President Obama has signed into law spending increases of nearly 25 percent for domestic government agencies - an 84 percent increase when you include the failed stimulus. All of this new government spending was sold as 'investment.'

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Research and development needs permanent tax credits to build the technology that spurs our growth. But no government programs alone can get America's students to study more science and math; parents must push and help their children to meet this goal.

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Put the money into schools. Rational ones that train young minds to think, to demand that persons in authority show the evidence for the ideas they push. Do that, and we won't need to provide a world for the Sacred Brethren who, given the opportunity, would run everyone else off the planet.

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To avoid large and unsustainable budget deficits, the nation will ultimately have to choose among higher taxes, modifications to entitlement programs such as Social Security and Medicare, less spending on everything else from education to defense, or some combination of the above.

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The people who run the international tests told us, "the biggest predictor of student success is choice." Nations that "attach the money to the kids" and thereby allow parents to choose between different public and private schools have higher test scores. This should be no surprise; competition makes us better.

John Stossel