Examples Of Government Spending Fallacy
• Government spending fallacy
• Some government spending is essential
• Public works providing employment concern
• Effects of taxes
• Risk and reward
Commentary: Many economist believe in the fallacy that the government can keep on spending without taxing. This belief is set straight by the reality of “national insolvency or a runaway inflation.” Whatever the government spends must be paid out in the form of taxes and the sooner the better. But not all government spending is bad. There is still a need of government spending to supply the public with needed services. The problem that comes into play is when the public sees a project, like the bridge example, to provide employment and increase the wealth in the community. Although workers
• Some government spending is essential
• Public works providing employment concern
• Effects of taxes
• Risk and reward
Commentary: Many economist believe in the fallacy that the government can keep on spending without taxing. This belief is set straight by the reality of “national insolvency or a runaway inflation.” Whatever the government spends must be paid out in the form of taxes and the sooner the better. But not all government spending is bad. There is still a need of government spending to supply the public with needed services. The problem that comes into play is when the public sees a project, like the bridge example, to provide employment and increase the wealth in the community. Although workers