http://blogs.wsj.com/economics/2014/07/30/one-big-factor-in-the-economic-uptick-government-spending/
In the article One Big Factor in the Economic Uptick: Government Spending, Josh Zumbrum talks about and illustrates the government spending being it federal or state and how the total spending has gone down forcing budget cuts in the necessary fields. One may think that government spending decreasing is a positive because we are in so much debt but in reality it lows the GDP and our economy can't keep growing.
The spending between state and government needs to be overlooked in a way where they aren't spending money on unnecessary items, and they don't spend too little so our GDP can keep growing and
With the debt being as high as it is there should definitely be a decrease in spending by the government. I agree that government spending is good but only if it is done responsibly with a realistic plan to pay for it, which has not been the case in awhile.
ReplyDeleteExpansionary fiscal policy appears to be a double-edged sword. On one hand, greater government spending results in increased aggregate demand, leading to higher economic growth. This is important as the U.S. economy continues to recover from the 2008 recession. On the other hand, it increases the size of the government’s budget deficit, an already staggering ~$0.5 trillion. U.S. debt and deficit have in recent years become serious problems to be addressed. While such issues cannot be remedied overnight, I believe reducing debt and deficit through decreased government spending is a necessary course of action.
ReplyDeleteIn my opinion through this grater government spending, economic growth may be achieved and i feel that once stable economic growth is achieved then the government can try to cover its debts and deficits via taxes.
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