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The Ludwig von Mises Institute  Advancing Austrian Economics,
Liberty, and Peace  Advancing the scholarship of liberty in the
tradition of the Austrian School  Search Mises.org  Government
Produces Nothing, Ever  Mises Daily: Tuesday, June 12, 2007 by
Can government spending contribute to macroeconomic stability
and the higher productivity of labor? Many people say yes,
because they believe that government spending can stimulate the
aggregate demand and contribute to the accumulation of capital
if it finances large public investment projects.  In one of my
previous articles I argued (against the still-prevalent view,
largely informed by Keynesian economic theory) that government
spending, far from being an appropriate means to counteract
economic downturns and unemployment, always and everywhere
exacerbates the very economic problems it is called upon to
solve.  In another article I tried to show that it is precisely
the governmentally shelter