If I give you $400 per week for 5 weeks and tell you to spend it at my store, and you come in and buy $2000 worth of stuff… did I actually make a sale?
A government is not a business and doesn’t operate as one.
This is why, for example if government starts spending money to improve infrastructure, like fixing bridges, building rail etc it causes GDP to grow. This is also the reason when during recession there’s a lot of projects like that. It simulates the economy.
If I give you $400 per week for 5 weeks and tell you to spend it at my store, and you come in and buy $2000 worth of stuff… did I actually make a sale?
A government is not a business and doesn’t operate as one.
This is why, for example if government starts spending money to improve infrastructure, like fixing bridges, building rail etc it causes GDP to grow. This is also the reason when during recession there’s a lot of projects like that. It simulates the economy.