fernandopartridge
Well-Known Member
In any case, I don’t understand how people think the government will magically make inequality disappear by investing in the public services.
To use a rather simplistic view of economics, you raise living standard by growing the size of the pie rather than divvying up more equally. The same could be said of public services, if there’s no growth, there will be a need for perpetual tax raises just to maintain current levels of services rather than improving them.
Government spending money on public services = government spending money into the private sector, i.e. the pie.
The pie does not increase by any other means other than banks creating credit, which of course has to be repaid.