GalaxyFlyer wrote:Aaron747 wrote:casinterest wrote:
But that 20% is used by the private sector. All that money that goes back to the IRS, still get used in outlays along with the Fed's printed money, and ultimately becomes a part of the money cycle in the private sector. Yes we can get too much Government, but it is usually balanced out by what the Fed creates to balance the budget.
It's also just an inaccurate take. Spending inevitably results in bids and vendor contracts - people conveniently forget the private sector actions many government programs.
Then why doesn’t the government take 60%, 80%? Does government spend and invest in productive ways better than the private sector?
Because absent very unusual scenarios like the Depression, there's no purpose to taking that much. As stated earlier: citizens and businesses receive services they have either directly voted for or proxies have advocated for. 'Production' is not government's aim, and never has been. That is not debatable.
What is also not debatable is that inevitably some programs are large enough that government cannot execute them without private sector vendors with specific expertise. So as cas said, ultimately whatever percentage that is cycles back through the private sector.