Government Spending Increases Unemployment
Harvard Business School research finds that increased government spending leads pivate companies to reduce staff and investment:
[C]ompanies experienced lower sales and retrenched by cutting payroll, R&D, and other expenses. Indeed, in the years that followed a congressman’s ascendancy to the chairmanship of a powerful committee, the average firm in his state cut back capital expenditures by roughly 15 percent
Politically-driven spending crowds out rational profit-motivated expenditures?!? Who would ever have thought such a thing?