Increased government spending can provide a temporary stimulus to demand and output but in the longer run higher levels of government spending crowd out private investment or require higher taxes that weaken growth by reducing incentives to save, invest, innovate, and work.
“I like loud music. I like music that fills my ears. I'm just going to pull out my iPod and see what we got here. We're always interested in new bands because we have a retail store in northern California. I think it's got to be happy.”