There’s a big debate these days about whether the government simply spends money or invests it. Republicans tend to say the government spends money, which is presumably bad for the economy, while Democrats tend to say the government invests money, which is presumably good for the economy.
If only it were that simple. In truth, the government sometimes just spends money -- which can be good in the short term and bad in the long term. And then sometimes the government invests it -- although the investments don’t always pay off.
So, in bad times like these, what should the government do? In particular, what, if anything, can state and local governments do? Will spending or investment make any difference to the economy in the short run? How about the long run?
To read the full, original article click on this link: Should Government Spend or Invest Money?
