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Does Government Spending Create Economic Growth?
If you knew a dollar invested in something would wind up losing more than a dollar, would you consider that a good investment?
The government does just that when it starts spending taxpayer and borrowed money. Watch as Professor Antony Davies of Duquesne University explains the unseen costs of government spending and the best way to stimulate the economy: the private sector.
“In the best case scenario what we see is still no relationship between government spending and economic growth. In the worst-case scenario, we actually see a negative relationship. That is, as the government spends more money, the economy actually contracts.” –Antony Davies