Pulled Off the Comment Section of FARK

"Economics 101
Let's say that Al has $100 worth of wood and builds a table out of it. Bob comes along and buys the table for $300. Bob is (economically) even, as he traded $300 cash for a table worth $300. Al is up $200. Nobody else on earth is affected at all. $200 in new wealth is added to the GDP. Now let's say that the government taxes Al $100 and uses the money to pay a government worker or on some bailout/stimulus plan. Bob is still even, Al has $100, and the recipient of the government handout has $100. You still have only $200 added to the economy. Not one penny is added to the economy by the government's tax and spend plan. If you consider that Al would have spent the $100 on something he values and that creates profit for the seller, the tax/spend transaction is economically negative.

/we're so screwed."