Government Spending Tutorial

When you have 20 to 25 minutes to spare, I recommend brushing up on government spending with Dan Mitchell’s four-part video series from his blog post Fiscal Policy Tutorial.

Each video is 5 to 6 minutes long, so it’s easy to watch or listen to in pieces. Even if you are of the left leaning persuasion, I believe you will find Mitchell is fair in his presentation. In the second video, for example, he admits that some government spending has benefits.

Also, I must say that I have never heard of the Rahn curve (see video 4). That curve posits that government spending, up to a certain point, does benefit the economy in terms of growth, but at some points starts to hurt economic growth primarily based on the problems discussed in the second video.  I will readily admit that the Laffer curve in video 4 is drawn with a strong right bias.

In this election season, watching these videos is worth your time.

Video 1:

 

Video 2:

 

Video 3:

 

Video 4: