Does government spending increase wealth?

The short answer is “NO.” Because spending does not increase wealth. The creation of wealth increases wealth. We don't have to get into complicated equations. Logic and common sense is sufficient to answer that question. read more

Government spending does increase the wealth of some (the beneficiaries of government spending such as arms manufacturers, welfare recipients, etc) but decreases the wealth of taxpayers. This is just the tip of the iceberg of an answer. read more

by Ankit Jaiswal on September 16, 2016 June 8, 2018 Basic Finance, Macroeconomics In response to the financial slowdown and its impact on the economy, the government plays a key role by increasing its spending in order to boost economic growth. read more

Government spending, even in a time of crisis, is not an automatic boon for an economy's growth. A body of empirical evidence shows that, in practice, government outlays designed to stimulate the economy may fall short of that goal. read more