| Kasz216 said: Must not be thinking of the laffer curve then. Whatever it is i'm thinking of is basically what the above shows. You can't have a government that spends a lot and spends mostly on infrastructures investments that imrpove the economy just because there aren't that many economy improveming government projects out there. Granted even less so in a country like the US... but in general. For example... based on how highway spending works. Highways are rarely ever built anywhere useful anymore. There is actually been a big push to "return to gravel" because of a lot of the disuse US roads have and cost maintaining things that aren't needed/wanted. If anything, you could argue US roads are OVER built. |
What you may of saw was the graph, of tax rate and GDP growth and saw that there was little connection between the two. It wasn't what someone else had pointed out, but your own observation.
I believe a problem with have now is that the law of diminishing returns have kicked in. Even war efforts are taking up a smaller percentage of the GDP, so it isn't crowding out funding much . There is little places people can go to get increases. There is a bunch of need for fixing infrastructure so bridges do collapse, but that merely causes a short term sugar rush. I would also argue the push for green is arguably a necessity, but you won't get a hugeh GDP gain from it, and isn't really going to cause gains in jobs either. It shifts labor elsewhere. If it leads to export increases,that is a different story for America. I know near where I am, there is a Chinese company company in to build a solar panels components factory, and that should employ 1000+ people. It is far more than what the government sponsored flop in the area did actually. Who is likely to get employed? Well, probably former people in the area who worked on assembly lines for IBM that IBM has not employed.
