"Associated Press reports today that Fed Chairman Ben Bernanke is telling Congress they must not cut federal spending sharply. Chairman Bernanke, you're wrong.
"The federal government is currently spending somewhere around 24% of America's total economic output -- even more if you ignore the government's accounting gimmick of 'offsetting receipts.'
"That's far, far too high. 24% of our economy has been displaced out of the productive private sector into the unproductive government sector. The best thing Congress could do right now is to cut spending sharply. That would be good for both our short-term and long-term economic health.
"Chairman Bernanke does not have a fantastic track record. Under his watch, unemployment has increased dramatically, the Fed has more than tripled the money supply, and inflation is rising.
"Chairman Bernanke, I suggest that you read Frederic Bastiat's excellent essay 'What is seen and what is not seen.' I think it would help you reconsider your devotion to Keynesian economics and broken-window fallacies. Government doesn't create economic activity. The American people do."
For more information, or to arrange an interview, call LP Executive Director Wes Benedict at 202-333-0008 ext. 222.
The LP is America's third-largest political party, founded in 1971. The Libertarian Party stands for free markets, civil liberties, and peace. You can find more information on the Libertarian Party at our website.
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