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You are forgetting that tax dollars have to come from somewhere. the money has to be taken from one group of people or financed. Those activities are not costl
by barney54 15y ago
You are forgetting that tax dollars have to come from somewhere. the money has to be taken from one group of people or financed. Those activities are not costless. This is one of the reason why other studies find that reducing government spending stimulates growth (some of those studies are described here: http://mercatus.org/publication/does-government-spending-affect-economic-growth http://mercatus.org/publication/does-government-spending-aff...)
- fennecfoxen 15y agoMy objection is that all too often you see the attitude that because some baseline level of government spending is good and profits the economy (and society), that Program XYZ I Just Proposed For Widows And Orphans[tm] is also good. And most fiscal conservatives have better things to conserve than food stamps. Let's talk about where the money really goes. Oh, wait, white elephant in the room.
- nerfhammer 15y agohttp://www.sourcewatch.org/index.php?title=Mercatus_Center http://www.sourcewatch.org/index.php?title=Mercatus_Center
- vannevar 15y agoThe article you cite actually makes the same observation that there isn't a consensus: This lack of consensus in the empirical findings indicates the inherent difficulties with measuring such correlations [between government spending and GDP] in a complex economy.