Well, I agree. Government has to operate and has to spend. All i am saying is the government spending results in net negative growth. That's all.
That's not exactly what is being said. What is being said is that when government uses a dollar of investment it returns 60 percent growth. When the private sector invests a dollar, it nets a dollar in growth.
Many independent studies going back decades have reached same conclusion. Do you believe BEA Researchers would publicly acknowledge same conclusion? Not a chance!
And where did the government get the money to begin with? The term "government spending" is misleading as it is the tax payer being forced to spend. By the time the money makes its way through the government, there is a not much left. When I spend the same dollar without the government's hindrance, more of it gets to where it should go. Of course, we work hard, pay taxes and the president gets credit for a growing economy!
Those studies, like the ones posted earlier in this thread, utilize injection of private dollars following the government capital expenditures as "growth", but don't count the private dollars injected in order to bolster numbers. This is a quite simple concept actually. Since the government has no ability to make revenue other than dollars siphoned off the private sector, there is quite literally no possible way for that to result in net economic growth that equals more than the value injected. Yes, government spending stimulates growth in certain situations, but at a net loss considering the dollars removed from the private sector to do so.
Show me a study that proves what you’re saying, because otherwise you’re just making s claim. If the government is taking dollars that would have otherwise been saved instead of spent, then it’s entirely possible for the government to reasonably have a greater multiplier impact than if the dollar would have just stayed in interest limbo.
Quote: "Show me a study....." I read several of them, military, infrastructure, education, food stamps, etc., and the return on every dollar spent ranged from a negative to $1, thus, who's right, Heritage, Policy Center, CATO, Krugman, Friedman?