America's Debt Crisis Explained
- Thread starter Locutus
- Start date
Lol. I wondered why "Prager University" sounded so strange. Low and behold, this "University" is actually a youtube channel run by a conservative talk radio show host.
Regardless, the basic info here is correct, but they gloss over the part that is actually important. Obviously you want to increase growth and cut spending. Every government would like to do that. That is easier said than done though.
Reducing government spending has a direct negative effect on the economy, and visa versa. Finding the right balance is what politicians have been fighting over since the dawn of time.
Regardless, the basic info here is correct, but they gloss over the part that is actually important. Obviously you want to increase growth and cut spending. Every government would like to do that. That is easier said than done though.
Reducing government spending has a direct negative effect on the economy, and visa versa. Finding the right balance is what politicians have been fighting over since the dawn of time.
Government spending on infrastructure has a positive effect on the economy. Entitlements, not so much.
Spending on "entitlements" does also have a large effect on the economy. Money distributed through these programs is money that people spend, which fuels a significant portion of the economy.
Now, the lesson from this isn't that the government can just keep handing out more and more money to stimulate the economy. The point is that cutting back on this stuff will have a direct negative effect on the economy.
