4 ms·
Growth is just change in total spending (= total selling). Less spending by one of the biggest spenders means less growth. The is the essence of "fiscal policy"
by spikels 11y ago
Growth is just change in total spending (= total selling). Less spending by one of the biggest spenders means less growth. The is the essence of "fiscal policy"[1]. Of course much of this is offset by the the need to fund this spending through borrowing, taxes or printing money (i.e. inflation) - at least eventually.
[1] https://en.m.wikipedia.org/wiki/Fiscal_policy https://en.m.wikipedia.org/wiki/Fiscal_policy