A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Does government spending increase your savings?

Best Answers

Yes, government spending does increase private sector savings. It’s simple accounting. When the government deficit spends, Treasury issues a bond out of thin air. The bond is sold to the private sector, and the proceeds are spent right back into the economy. read more

Finally, putting together discretionary spending, mandatory spending, and interest on the debt, you can see how the total federal budget is divided into different categories of spending. This pie chart shows the breakdown $3.8 trillion in combined discretionary, mandatory, and interest spending budgeted by Congress in fiscal year 2015. read more

If government spending causes the unemployed to gain jobs, then they will have more income to spend leading to a further increase in aggregate demand. (e.g. construction workers employed by government increase spending in pubs and transport, causing other sectors of the economy to benefit from the government spending). read more

Encyclopedia Research

Wikipedia: