One of the main arguments that stimulus proponents have been making is that there are “idle resources” in the economy right now. Our productive capacity has not changed and our labour force has not lost its skills – yet these factors of production are laying idle. Thus, the government must “stimulate” these factors back into productive use. Any government spending cannot possibly “crowd out” private spending, as there is literally nothing to crowd out. Unfortunately, there is little explanation of why idle resources have piled up in the first place.
Here I will cite Peter Schiff, Tom Woods and Robert Murphy as to why resources are suddenly idle, why stimulating these resources is undesirable, and why targetting idle resources can’t possibly work.
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Utopia, you are standing in it! 
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