Authors Burton and Anita Folsom say the federal government's use of subsidies and bailouts has demoralized the American people.
Companies that rely on federal funds lose the motivation to deliver profits based on quality products, the Folsoms say, and so subsidies should be done away with altogether, they told John Bachman and J.D. Hayworth on "America's Forum" on Newsmax TV.
"There would be a period of adjustment, but the public would be surprised at how much things would pop back and unemployment would drop," Anita Folsom said Tuesday.
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The Folsoms are the authors of a new book, "Uncle Sam Can't Count: A History of Failed Government Investments, From Beaver Pelts to Green Energy,"
which they say is a history of crony capitalism in the United States.
That cronyism and its bitter fruits are best evidenced by the Troubled Asset Relief Program and the American Reinvestment and Recovery Act, two major pieces of legislation that were designed to limit the collapse of the economy in 2008 and to spur new economic growth.
"That showed a real ignorance of how the private sector works, because even months after these stimulus packages were put into place, the shovel-ready jobs just weren't there," Anita Folsom said. "Those stimulus funds were used to grow government, both at the federal and state level, and very little of that got out to stimulate the economy."
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