The Parliament's proposed 3.8 billion economic stimulus is a fallacy.
Spending by the State does not inject any more money into the economic circuit than would otherwise occur.
How so? you might ask.
Well, a parliament has no money of its own. It cannot give unless it first takes. In this case it would plunder the taxpayer and, or, raise revenue by borrowing. In either case the people would lose 3.8 billion dollars of spending power.
And so, if the people spend the 3.8 billion themselves, the net result would be better than if the Parliament spends it for them.
I say better, because a certain loss always occurs as revenue passes through the bureaucracy. No machine is 100% efficient, not even the State's bureaucracy.
And so, except for a possible improvement in infrastructure, the country would be better off if the Parliament did nothing.
