Amazing research results contradict what we all thought —  NOT!

Big Surprise: Harvard Study Shows Government Spending Hurts Business

by Julie Borowski

Harvard Business School recently released a no-brainer report that found a negative correlation exists between government spending and the success of businesses. In addition, their research shows that if a Senator becomes a chair to a top committee, the state experiences a 40 to 50 percent increase in earmark spending.  In turn, as government spending increases, businesses experienced lower sales and cut back on economic productivity costs, such as R&D expenses. As the government’s presence grew in districts, companies also laid off more workers.
While the Harvard researchers were surprised by their findings, we’ve been pointing out for years that this is common sense. Remember, every dollar spent by the government means one fewer dollar in the private sector for consumers and businesses to spend. Government cannot create wealth; it simply redistributes it. The private sector is the key to economic growth—taxing citizens to pay for flawed “stimulus” and earmark programs cannot create “jobs” or “stimulate” anything because this spending does not occur in a vacuum. The Harvard Business School’s study can be summed up in one word: Duh.

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