bripat9643
Diamond Member
- Apr 1, 2011
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If the government raised spending, it would have a positive effect. The spending would go to pay salaries and benefits. That in turn would create more consumer demand and more jobs.
If that were the case, then why didn't the stimulus end the recession? Government can't spend without taxing, borrowing, or inflating the currency. The assumed positive effect is more than compensated for by the negative effects. All government spending is a net drag on the economy.
WHich is why we've NEVER gotten out of a recession without a burst of federal spending.
Yeah, right. Obama hasn't increased spending at all!
It's when most of the wealth gets concentrated in a few hands it starts to stagnate.
Kind of like it is now.
Government is what causes the economy to stagnate.