2 ms·
While there is a kernel of economic truth in your comment (government spending stimulates activity), the logic breaks down by assuming: - All spending is equal
by n1b0m 1y ago
While there is a kernel of economic truth in your comment (government spending stimulates activity), the logic breaks down by assuming:
- All spending is equally productive
- All tax comes back efficiently
- Big contractors = better fiscal outcomes
In reality, value-for-money, fiscal responsibility, and economic multipliers are more nuanced. More spending doesn't necessarily mean better outcomes; how it's spent matters enormously.