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The counterargument is whether the government should be directing the allocation of resources via its spending rather than private actors. Any money spent by t
by Panzer04 1y ago
The counterargument is whether the government should be directing the allocation of resources via its spending rather than private actors.
Any money spent by the government in an economy is going to cause a redirection of resources from other actors to its own spending. In an economy running below its normal potential it makes it easy to justify because not much is getting done anyway, but if everyone is already doing a lot of stuff and there's not much spare capacity, then the government is effectively overriding the preferences of private citizens to its own ends to a much greater degree.
There's other arguments as well as to how efficiently the government tends to be at actually getting productive things done with its spending.
It's up to you whether this is good or not, but I'd argue it should not be our default position.