Government spending growth drives economy, impacts debt and income distribution.
The article explores how government spending growth affects the economy in the long run. Instead of focusing on stabilizing the market, the researchers look at how deficits, debt, and income distribution are impacted. They find that government spending on goods and services, funded by borrowing, drives economic growth. The study shows how the economy adjusts to this growth rate over time, analyzes the impact on debt, stability, and income distribution, and discusses the policy implications of these findings.