Trump Administration Cuts Harmful To American Economy Because Government Spending Grows The Economy

YouTube video link: https://www.youtube.com/watch?v=kO1QFegDpRE

Trump Administration Cuts Harmful To American Economy Because Government Spending Grows The Economy

. A vlog by the YouTube channel named in the video’s upper left corner and serves as the original blog post for this content.

Trump Administration Cuts Harmful To American Economy Because Government Spending Grows The EconomyIf you took basic macro-economics you learned that Gross Domestic Product equals “C+I+G+NX”. Or as Britanica put it “gross domestic product (GDP) is calculated—known as the expenditure approach—is by adding the expenditures made by those three groups of users. Accordingly, GDP is defined by the following formula: GDP = Consumption + Investment + Government Spending + Net Exports or more succinctly as GDP = C + I + G + NX where consumption (C) represents private-consumption expenditures by households and nonprofit organizations, investment (I) refers to business expenditures by businesses and home purchases by households, government spending (G) denotes expenditures on goods and services by the government, and net exports (NX) represents a nation’s exports minus its imports.”Government spending helps the economy in these ways:Increased demand When the government spends more money, it increases demand for goods and services. This can lead to more jobs and higher incomes.Consumer spending Higher incomes lead to more spending by consumers, which increases demand even more. This can lead to more jobs and higher incomes again.Fiscal policy Governments can use fiscal policy, which is a combination of spending and taxation, to promote economic growth and reduce poverty.Stimulating the economy During a recession, governments may use fiscal policy to stimulate the economy.And if the Trump Administration is really concerned about inflation, then why not inact price controls?Think about itMore later.

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