Government spending on social services boosts private consumption, new study finds.
This paper looks at how government spending affects private consumption in the UK. The researchers studied different types of public spending and their impact on private spending. They found that when the government spends more on wages, it can reduce private consumption. But when the government spends on social programs or goods and services, it can actually boost private consumption. This shows that the effects of government spending on private consumption depend on what the money is being spent on.