There is alternative views to that: https://modernmoney.wordpress.com/2010/09/20/the-myth-of-crowding-out/ https://modernmoney.wordpress.com/2010/09/20/the-myt

There is alternative views to that: https://modernmoney.wordpress.com/2010/09/20/the-myth-of-crowding-out/ https://modernmoney.wordpress.com/2010/09/20/the-myth-of-cro... Anyway, you say "businesses re-invest the income to produce goods" that is not always true as we can see at this moment. They just hoard the money. And "Private sector income is further reduced by expansion of taxation", but expansion of taxation is not necessary if the economy is not overheated and the people in charge understand what a public deficit really is.