Big Government

  • 04.13.15

    Does More Government Help Or Hurt?

    In this video, Stephanie Kelton investigates the economic philosophy that states that smaller government will improve the economy. This philosophy in practice equates to: cutting taxes on the job creators to create more jobs. Kelton argues that this doesn't work. She presents Kansas as a case study where Kansas cu...

    In this video, Stephanie Kelton investigates the economic philosophy that states that smaller government will improve the economy. This philosophy in practice equates to: cutting taxes on the job creators to create more jobs.

    Kelton argues that this doesn't work. She presents Kansas as a case study where Kansas cut taxes on job creators. Rather than seeing an increase in job creation, Kansas' job creation is lagging behind the national average. The problem with this economic approach, Kelton argues, is that "It presupposes the most important part of capitalism: demand." Businesses hire when there is demand, not when they have fewer taxes. 

    Kelton then goes on to describe how government spending (and therefore larger government) can be a good thing and has been a good thing in the past. She suggests that these government programs would help boost the economy: federally funded jobs program, infrastructure investment, investment in education, and investment in research & technology.