Because expectations of lower future taxes and debt, and therefore higher incomes, increase private spending.
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With private spending weakening, not slumping, there is no case for a fiscal offset.
When governments tax, borrow and spend on targeted programs, there is less money available for private spending and borrowing.
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The Affordable Care Act has some measures that affect private spending as well.
Mr Romanow sees little benefit either in more private spending on medicine, or in private for-profit provision of care.
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We now find that this new technology does allow private spending (even if not for profit) to fund the arts.
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Proponents harp on the jobs created by the deficit spending while ignoring the jobs destroyed by crowding out private spending.
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One way of boosting such private spending on health would be to get more people to take out private insurance.
Poland's resilience in the downturn and its current strength owe a lot to private spending at home and a big fiscal stimulus.
But private spending has risen far more, by a factor of 400.
Nor, with credit tight and consumers keen to rebuild their balance-sheets, is it likely that greater confidence will boost private spending much.
The government will be crowding out private spending via higher interest rates.
Private spending and residential spending are down in July, the latest data.
Third, both public and private spending are beginning to gather some momentum.
Countries that are running current-account surpluses, mainly in the north, must help, by avoiding overzealous belt-tightening and introducing reforms to encourage private spending.
It showed that public and private spending on higher education in the UK is 1.3% of GDP - below the OECD average of 1.5%.
Jean-Claude Trichet, president of the European Central Bank, argues that fiscal thrift will increase private spending by reducing uncertainty about government tax policy and debt.
Economic chaos, it seems, is changing public sentiment towards private spending.
Limiting government and private spending on healthcare is a necessity if we are to remain a prosperous, entrepreneurial, and globally competitive nation in the coming decades.
With health-care inflation outstripping the ordinary kind and an increasing aversion to higher taxes, Britons' extraordinarily low level of private spending on health may have to change.
Despite its best efforts, the Fed has been unable to bring private spending back to pre-crisis levels and until fiscal policy sorts itself out, confidence is likely to remain low.
Private spending in surplus economies will not soar overnight.
And he launched a counter-attack on Labour's plans to increase spending on the health service by calling for a boost to private spending on health - which is likely to ignite a fierce debate.
Instead of focusing on aggregate demand replacement, policymakers should view government stimulus spending from an economic return perspective that focuses on the potential value created by government spending versus the potential value created by private spending.
The only specific commitments given by Mr Portillo were that a Tory government would cut taxes on business and enterprise, cut duties on fuel, restore the married couple's tax allowance and provide encouragement to increase private spending on health.
With unemployment high, output far below its potential, private spending still weak and interest rates close to zero, Mr Krugman and his allies argue that fiscal stimulus remains an essential prop to the economy and that deficit-cutting now will spell stagnation and deflation.
Big deal, private spending down.
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Either from increased borrowing, or increased taxes, which both take an equal amount of resources and spending out of the private economy as they finance increased government spending, or from printing more dollars, which just creates inflation (devaluing private spending by an equal amount).
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Private sector spending creates a multiplier effect of about four times greater than public spending.
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