Government spending cannot generate economic growth. At a fundamental level the economy is the sum of transactions between buyers and sellers, a giant marketplace where people and businesses trade goods and services for money. Every buyer requires a seller; you cannot buy a product unless somebody has manufactured it and is ready to sell. If supply is unchanged, an increase of demand simply results in bidding wars among buyers and higher prices. More demand without more supply does no good. Therefore, economic policy should focus on the supply side, with policies that encourage businesses to invest and create.
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