Jack Murtha earns a dukedom for his Steroid Economics. What is Steroid Economics? It can be summed up in this phrase about Jack Murtha's life from the
Pittsburgh-Post Gazette[F]rom his perch on the House Appropriations defense subcommittee, he
personally dispensed billions of dollars in federal funds, steering much of it
to his economically wracked 12th Congressional District.
In the short term, Steroid Economics is the view asserting the folly that Government Spending causes stable, long-lasting economic growth. Murtha's 12th District was so poor exactly because he kept steering pork-barrel spending their way.
Government tax dollars do not cause growth, because Congressional budgeters only transfer the wealth of one state's tax dollars to another state, say using Florida's tax money to build new bridges in Nebraska. Usually what happens is a quick influx of cash that overspends for a project, and provides a very brief shot-in-the-arm for that state's economy. Then, the project is finished and all the tax dollars vanish. Any normal business that caters to the government-contracted company is left holding the bag with no economic base. Their customers have left. There is even withdraw and worse contraction resumes. The only solution is to direct more tax dollars to that ravaged economy. But no real growth happens. Once the tax dollars dry up, that local economy dries up.
On the Left, the engine for economic stability is government spending. The Government in charge (local, state, or national) takes our tax dollars and spends them on projects and expenditures deemed necessary. The problem is that once the project is finished or the tax dollars are used, more are needed. But there is no more money, unless new tax dollars are grabbed. Normally, in good economic times the dollars are budeted and spent, so that by the time the government checks would bounce, new tax dollars have been collected to keep up the flow of money. Sometimes loans are needed.
However, in bad economic times, fewer tax dollars can be found. The government resorts to loans, defecit spending, or new taxes. Eventually this spending snowballs into massive debt and no real growth. The Federal Government has the power to take tax dollars from Ohio and spend them on building curbs in Colorado, but once the money is used up, more is needed. In bad economic times no tax dollars can be found. So the government has businessman from China buy the bonds to finance our massive debts.
The problem is the government way overpays for any service, so way more cash than normal floods into one region, but to send cash that way, another section gets left out and the tax dollars are blown, like a drunk on payday.