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Well, the idea of spending more, is working more, which the latter is reflected by GDP. If the government spends more, it should cause more work, which should
by personomas 3y ago
Well, the idea of spending more, is working more, which the latter is reflected by GDP.
If the government spends more, it should cause more work, which should lead to higher GDP.
This is one simple way to look at it.
If the government is spending more, but GDP isn't growing by the same, it might be a sign that the governments expenditures are wasted.
Now, I'm not saying that's happened, but it could be. Government spending is historically the most likely to be wasteful, in comparison to individual/retail/business spending.