Government Spending
Government spending or government expenditure consists of government purchases, which can be financed by seigniorage, taxes, or government borrowing. It is considered to be one of the major components of gross domestic product.
John Maynard Keynes was one of the first economists to advocate government deficit spending as part of a fiscal policy to cure an economic contraction. In Keynesian economics, increased government spending is thought to raise aggregate demand and increase consumption.
Read more about this topic: Keynesian Formula
Famous quotes containing the words government and/or spending:
“The government will ... go on in the highly democratic method of conscripting American manhood for European slaughter.”
—Emma Goldman (1869–1940)
“The city is always recruited from the country. The men in cities who are the centres of energy, the driving-wheels of trade, politics or practical arts, and the women of beauty and genius, are the children or grandchildren of farmers, and are spending the energies which their fathers’ hardy, silent life accumulated in frosty furrows in poverty, necessity and darkness.”
—Ralph Waldo Emerson (1803–1882)