Increased public sector wage costs mean increased government spending on wages.

Yet, despite increasing economic costs, Iran s response only hardened.

Indeed, the wage increases of recent years have not changed the basic cost structure of Chinese companies.

Thus, greater reliance on fiscal policy increased government spending would be necessary.

The government must avoid relying too much on proposals for tax increases, which ultimately feed back on growth and sustainability. It would be far preferable to balance tax increases with some reversal of runaway government spending.

It would be far preferable to balance tax increases with some reversal of runaway government spending.

The fall in taxes and the rise in spending do widen the budget deficit, but in a healthy and useful way.

The people who are more likely to be able to afford a small dent in their earnings are the ones less likely to use that service!

Of course, the drag will be much smaller, as tax increases and spending cuts will be much milder.

The second arrow entails a sharp increase in short term fiscal expenditure, especially investment in infrastructure projects.

a massive increase in defense expenditures, fueled by two fruitless wars, but going well beyond that

In Tanzania, next year s budget provides for a 44 increase in poverty related spending.

Much of the stimulus merely financed increased spending by state governments that would have been paid for in other ways.

Low interest rates, the dollar s continuing role as the world s main reserve currency, and the capacity of the public sector to increase spending make the case for higher infrastructure spending compelling.

That restructuring of insurance would simultaneously protect individuals, increase labor mobility, and help to control health care costs.

The projected spending increases are equal to 15 of GDP, and are the largest that any country has undertaken so far in response to the financial crisis.

Moreover, any increase in spending on infrastructure or any revenue loss from tax reform should be offset elsewhere.

Meanwhile, scaling up infrastructure spending could provide an often overlooked opportunity for long term institutional investors.

And its automatic stabilizers, with spending automatically increasing as economic woes increased, held out the promise of moderating the downturn.

Increasing infrastructure spending by a quarter, which would represent a huge administrative effort, would lift GDP growth by just 0.4 percentage points.

It's the increased order.

Just a 0.1 increase in borrowing costs would mean hundreds of millions of euros in extra debt service payments a year.

There is little waste to cut from domestic spending, and many areas where increases in public spending are needed.

Expenditure analysis

E. Expenditure estimates

And widening interest rate spreads on government bonds do not bode well, either, as this will quickly lead to pressure for further spending cuts.

One of the longest standing propositions in economics is the balanced budget multiplier increasing taxes and expenditures in tandem stimulates the economy.

The increased spending leads to higher employment, an increase in capacity utilization, and, eventually, upward pressure on wages and prices.

Other parts of the stimulus went to individuals, but, given the nature of the fiscal package, increased transfers and spending added more to the national debt than to GDP.

Then along came President George Bush Jr. to replay Reagan large tax cuts, a big increase in military spending, and continuation or even expansion of popular spending programs.

That's a magnifier times 10.

Several factors have prevented high oil prices from affecting the demand for petroleum products in the US in recent years, such as increased government spending, low interest rates, tax breaks, and an increase in real incomes.

Low income countries have posted larger gains in health and education spending than other countries under IMF programs.

Even if the US economy might experience some short term demand boost from increased military spending, the rest of the world would not.

But the contraction in government spending has been predictably devastating 25 unemployment, a 22 fall in GDP since 2009, and a 35 increase in the debt to GDP ratio.

There'll be a lot of expenses.

nbsp nbsp nbsp nbsp nbsp nbsp nbsp a massive increase in defense expenditures, fueled by two fruitless wars, but going well beyond that

What most European countries get for their social expenditure is a lot of state provision of services, and not much reduction in social inequality.

Even without widening the fiscal deficit, such balanced budget increases in taxes and spending would lower unemployment and increase output.

I have a lot of expenses.

If this is financed by cutbacks elsewhere in the budget, the main consequence will be only a re distribution of government spending, which is not necessarily inflationary.

Of course, if, say, by 2008 the disappearing national debt really did appear to pose an imminent danger, Congress would have happily obliged in cutting taxes or increasing expenditures.

Cutting expenditures on the Iraq war and increasing expenditures on education can simultaneously increase output in the short and long run and reduce the deficit.

But that would require them to rely less on monetary policy and more on appropriate fiscal policies (such as higher spending on productive infrastructure).

Short of default and inflation, most countries are forced to accept big tax hikes and spending cuts, often triggering or deepening a recession.