Pro-bailout economists talk about “the multiplier” effect. Spend some government (taxpayer) money, and the effects “multiply” in the economy, as if the Invisible Hand were on speed. Some day some young genius is going to earn a Nobel explaining “the divider” effect. Create a government job and the productivity in the marketplace “divides” as a result of the increased taxes needed to support the jobs . . . down the road. Mathematize the notion, and you’ve got your Nobel. (Of course, there’s nothing in the idea that Bastiat or Mises or Tullock hasn’t explained — but add that math and you’ll really get somewhere.)
- Chortlenomics, by Paul Jacob, in Townhall.