Why does federal spending not work, when trying to get a country, such as the US, out of debt?

Update:

Ed you're an idiot. Clearly i was trying to elicit responses from those who believe it. If you don't, that means it doesn't apply to you, which means you shouldnt have f**king answered.

4 Answers

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  • V2
    Lv 6
    1 decade ago
    Favorite Answer

    Do you think cutting budget would work?

    It depends what period of time we’re talking about. There is simple spending, and there is investing.

    Many of government programs (except safety net) are infostruture investments that will pay off later.

    If businessman borrows money to invest into his business, it’s considered to be a good thing although it’s also a debt. Do you think that this businessman could expand his business by cutting his expense instead?

    Of course, a lot of government spending is related to preserving status quo of those who lost jobs. Conservatives call it a waste. However, if you’re a businessman and stop maintaining your business when it’s in crisis, your chances to fail are much higher than if you maintain it.

  • Dale
    Lv 7
    1 decade ago

    Australia had stimulus spending and they got out of their recession last year. Reagan got out of a recession by raising corporate taxes $420 billion.

  • Fred
    Lv 6
    1 decade ago

    Spending is what gets one into debt. Explain to me how even more spending is going to get one out of debt.

  • ?
    Lv 6
    1 decade ago

    you can not stimulate the economy with borrowed money. borrowing leads to paying back with interest.

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