Quotation of the Day…

by Don Boudreaux on November 7, 2012

in Myths and Fallacies, Reality Is Not Optional, Stimulus

… is from page 219 of Steve Landsburg’s 2009 volume, The Big Questions (brackets added):

The same fallacy [that is, the politically popular fantasy that scarcity isn't always a binding constraint] is father to the prejudice that the accumulation of great financial fortunes somehow impoverishes the rest of us.  In fact the exact opposite is true.  The tycoon who hoards wealth in the form of stocks, bonds, and currency instead of splurging on goods and services is leaving more goods and services for you and me.  If more people grasped this simple point, there might be less enthusiasm for “economic stimulus” packages that promise to fill our bellies by encouraging others to grab ever larger shares of the communal pie.

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