Government Spending and the Economy

http://www.futureofcapitalism.com/2012/01/government-spending-and-the-economy

A professor of economics at the University of California, San Diego, Valerie Ramey, has a new paper out titled Government Spending and Private Activity: "In most cases private spending falls significantly in response to an increase in government spending." Increases in government spending do reduce unemployment, but "virtually all of the effect is through an increase in government employment, not private employment."

by Editor  |  Jan 30, 2012 at 11:01 am Related Topics:  Education, Government Spending, Stimulus receive the latest by email: subscribe to the free futureofcapitalism.com mailing list