Governments Wield Fiscal Policy to Boost Economies, Prioritize Citizen Welfare
The paper aims to understand how economic growth and government spending interact in the U.S., Germany, Japan, and the U.K. from 1960 to 1996. It explores different economic models to see how well they reflect real-world data. The study suggests that in Germany and Japan, governments act strategically to improve people's well-being. On the other hand, in the U.S. and the U.K., the governments generally follow straightforward policies without much optimization. Overall, the idea that governments should keep taxes stable regardless of the economy's ups and downs doesn't seem to hold true in any of these countries during the studied period.