Study: Federal stimulus handouts likely to hurt private sector — Kansas Liberty

Kansas Liberty:

According to a study released Monday by a free-market grassroots group, the economic stimulus that’s supposed to come with federal bailout funds is likely to have a damaging effect on the private sector, instead of improving economic conditions.

As many as 22,000 Kansas jobs are to be lost, the study says.

Americans for Prosperity-Kansas released the study by Arduin, Laffer & Moore Econometrics, analyzing the impact of the federal stimulus plan on the states.

Donna Arduin, one of the authors of the study “The Economic Impact of Federal Spending on State Economic Performance” will be in Topeka Wednesday to discuss the findings with legislators.

“Obviously, when government expenses go up, that money is taken from the private sector,” said Derrick Sontag, AFP-Kansas state director. “While that seems to be an obvious concept, many of our elected officials don’t seem to understand how increasing government spending ultimately crowds private sector growth.”

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