This is an individual opinion. Since I'm Canadian I would say to a point only because we are a very small country. We are basically taxed to death in British Columbia (the highest taxed Province in Canada) so more taxes would go over like a lead balloon. It has been found through history that many governments (all over the world) do not spend the money wisely. That's just putting it mildly in Canada. Canadians are very under-estimated because we do all come to the rally of others (9/11, flooding in New Orleans, Tsunami victims, etc.) We are a very generous people and do the best we can. During 9/11 Canadian volunteers went to New York in droves, we gave blood, clothing, money and anything else we could do. Not often on American news does one hear about this. As far as the war raging on we have a small Army and the Government has cut funding back on the Army and even Navy. We are suppose to be "Peacekeepers" but find our young men and women fighting in this new war and many Canadians are confused because of it.
Because two thirds of all government spending is on entitlements which the government connot easily alter. (by Solomon Zelman)
A decrease in government spending and increase in taxes.
6 months
An increase in government spending helps to stimulate an economy. Because the government is now paying other people to do work, those people are now receiving an income. They can then reinvest in the economy, leading to an overall growth in the nation's economy.
When unemployment has increased
Because two thirds of all government spending is on entitlements which the government connot easily alter. (by Solomon Zelman)
During the Great Depression of the 1930s, the national government was in debt. They had to increase their spending for public services, such as food assistance because people were too poor.
A decrease in government spending and increase in taxes.
6 months
An increase in government spending helps to stimulate an economy. Because the government is now paying other people to do work, those people are now receiving an income. They can then reinvest in the economy, leading to an overall growth in the nation's economy.
When unemployment has increased
When unemployment has increased
It will most likely stimulate private spending
It will most likely stimulate private spending
It will most likely stimulate private spending
higher interest rate
Government Spending