Why Might Government Expenditures Be More Appropriate Than Tax Cuts

question 76

Essay

Why might government expenditures be more appropriate than tax cuts to counter recessions? Is there any evidence for this thinking?

---

Definitions:

Analytic Psychology

A branch of psychology founded by Carl Jung that focuses on understanding the psyche through exploring the collective unconscious and individual personal experiences.

Neo-Freudian

A revision of Freud's psychoanalytic theory that emphasizes social relationships and a sense of self over innate drives.

Freud's Theory

An approach to understanding human behavior that focuses on the role of unconscious desires and conflicts as the primary drivers of human actions.

Adult Personality

Characteristics and patterns of thought, emotion, and behavior that are established during adulthood.