Originally Posted by joe
What do some choose to believe, and how is it not so?
My point is that govt spending isn't always just shuffling money around. In the case of transfer payments, then that would be a zero sum game but govt spending us does create value in the same way a private firm would. Education and infrastructure are government funded and provide value beyond the dollar amount being taxed and spent. Arguing that society would be better off leaving things alone because private firms is another argument but you get my point.
As far as the multiplier effect and stimulus, it isn't simply shuffling money around because the money being pumped into the economy is borrowed which increases incomes w/o taxing others (which causes a whole other set of issues).