Moid on Nostr: Agreed. The easiest way I find to explain this to people is simply that gov spending ...

Agreed. The easiest way I find to explain this to people is simply that gov spending is a component of GDP.

If you cut gov spending - all else being equal - you get a contraction in the economy.

So the private sector needs to offset the reduction for the economy to tread water. That’s going to be tough to do as it means the private sector leveraging up. ( It could be offset by increasing imports, but looking around, globally the economy isn't do well either lol. )