Government Spending Quotes
AI Explanation: Milton Friedman explains 4 ways to spend money: 1) Spend your money on yourself (you will be careful about both cost and quality) 2) Spend your money on others (you care about cost, less about quality) 3) Spend someone else’s money on yourself (you care about quality, not cost) 4) Spend someone else’s money on others (you care about neither) The last one is how government spending works.
One economic view of economic development is that the government should invest in education, scientific research, and infrastructure which will produce and stimulate economic growth. The contrary is that taxation takes capital out of the private sector that is needed for investment to produce economic growth. Both sides are correct. In the United States for example three of the greatest economic stimulants were the building of the Railroads, the National Highway System, and the Internet all developed in large part with taxpayer dollars. At the same time taxes do diminish the amount of private capital available for the economy. These are tradeoff decisions like most things in economics.