Study finds increased gov’t spending results in unemployment

What a shocker, eh?

Don’t color Veronique de Rugy shocked, shocked to find that government spending crowds out private investment, but the results of the new study by Harvard Business School will certainly shock some Keynesian academics — and high-ranking government officials. Instead of providing a stimulating effect to the economy, government spending creates pressures on private industry to reduce staff and investment. The study’s authors count themselves as among the shocked: