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:
“Good government is known from bad government by this infallible test: that under the former the labouring people are well fed and well clothed, and under the latter, they are badly fed and badly clothed.”
—William Cobbett (1762–1835)
“We can’t forever be spending our lives paying for political follies that never gave us anything but always took from us, and I am content with the narrowest metes and bounds provided I have peace and quiet for work.”
—Stefan Zweig (18811942)