Government can also get money through bonds, though? And government spending of these funds can be argued to go much more directly to economic growth for the region than most any other spending.
Note that I don't really disagree with your second. Just pointing out that your two options for how government got money is not complete.
Bonds are an exchange of cash now for more cash later in the other direction. Eventually, that “cash later” is taxed or inflated away (printed), so it’s a difference in timing more than category.
In the long run, all government debt is going to be future taxes. There are many programs that the government spends on that are efficient and produce more growth than the taxes collected would have, and there are many that don't and produce less growth than leaving the money in the hands of the taxed. Sometimes this is due to government inefficiency, and sometimes because we decided it's what we want, like medicare for elderly who will never return the investment into their health.
I'm pretty heavy against "efficient" as a goal to look for in government spending. In particular, the first spend on anything will never be as efficient as later spending. That just isn't how it works. So, if you are trying to seed something with government spend, expect some inefficiencies.
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Government can also get money through bonds, though? And government spending of these funds can be argued to go much more directly to economic growth for the region than most any other spending.
Note that I don't really disagree with your second. Just pointing out that your two options for how government got money is not complete.
Bonds are an exchange of cash now for more cash later in the other direction. Eventually, that “cash later” is taxed or inflated away (printed), so it’s a difference in timing more than category.
Fair. Still largely a different form getting cash now, though? Particularly if you account for the fact that governments can go belly up.
In the long run, all government debt is going to be future taxes. There are many programs that the government spends on that are efficient and produce more growth than the taxes collected would have, and there are many that don't and produce less growth than leaving the money in the hands of the taxed. Sometimes this is due to government inefficiency, and sometimes because we decided it's what we want, like medicare for elderly who will never return the investment into their health.
I'm pretty heavy against "efficient" as a goal to look for in government spending. In particular, the first spend on anything will never be as efficient as later spending. That just isn't how it works. So, if you are trying to seed something with government spend, expect some inefficiencies.
Sure, government spending is not purely an investment in future tax. Goverment is not purely a financial investment vehicle.
This is so obvious as to barely merit acknowledgement.
That's only true if you assume that governments last forever. They sometimes die with debt and their financiers take losses.