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Wrong Again, Mr. President. Capitalism Built America August 14, 2013 8:01 AM | Tagged as capitalism, investment
WSJ August 6, 2013, Page A13: “Obama’s False History of Public Investment” By Schweikart and Folsom.
Somewhere during his first team, President Obama and his legion of writers discovered a magic word to euphemize his profligate spending, investment. Government investment, to him, is the way progress is made. Nope. Professors Schweikart and Folsom show that entrepreneurs build our roads, canals, rails, and other important infrastructure better than governments. Obama’s thesis is “build the infrastructure and jobs will follow.”
These two history professors make a clear case that this vision is backwards. Henry Ford and others put cars in almost every garage before the interstate system act was passed in 1956. The highways were the byproducts of Ford and his capitalist ilk.
Regarding the transcontinental railroad, they went broke because government got ahead of settlements. The only such railroad to be profitable was in Canada, built with no government funding.
Airports and canals each have a similar story. To quote these professors, “building infrastructure was never the engine of growth, but rather a lagging indicator of growth that had already occurred in the private sector.”
These are a few examples of many showing capitalism -- not bureaucracy – is the prime mover of an improving society. Investment by capitailist who know how to take reasonable risk has always trumped govenment "investment".
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