In economic terms, the government expenditures multiplier is always one less than the private sector multiplier. Simply stated, this economy would be better served if the gov’t only provided those goods and services dictated by the Constitution, namely the provision of social overhead capital (e.g., transportation and communication infrastructure) and the policing of property rights (e.g., a standing military and a legal system). The reduced expenditures and taxes would see our economy thrive in the absence of all of the taxes and regulations that are currently strangling our economy.
government spending is a negative on the economy