The conservative assertion that government spending “crowds out” private investment has been ascendant since Ronald Reagan’s claim that “government is not the solution to our problem; government is the problem.” The idea is that the government is so big that it discourages private investors from competing in the marketplace.
Today, we face the reverse condition: the casino market that dominates the finance sector is crowding out important public investments.
via How Wall Street is crushing Main Street – The Week.
