Prof. Antony Davies: Does Government Have a Revenue or Spending Problem?
April 25, 2012
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2:48Now PlayingProf. Antony Davies: Does Government Have a Revenue or Spending Problem?
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People say the government has a debt problem. Debt is caused by deficits, which is the difference between what the government collects in tax revenue and the amount of government spending. Every time the government runs a deficit, the government debt increases. So what's to blame: too much spending, or too little tax revenue? Economics professor Antony Davies examines the data and concludes that the root cause of the debt is too much government spending.
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