a decrease in government spending would cause
negative effects on public services and the economy. They mentioned that cutting funding for essential services such as education, healthcare, and infrastructure would lead to a decline in the quality and accessibility of these services. This would ultimately have a detrimental impact on the well-being and development of society.
Furthermore, LectureNotes highlighted that reducing government spending can also result in job losses and slow down economic growth. When the government cuts its expenditures, it often leads to a decrease in demand for goods and services, which in turn affects the business sector. This can result in layoffs, reduced consumer spending, and a slowdown in economic activity.
LectureNotes emphasized the importance of finding a balance between reducing government spending and ensuring the provision of necessary public services. They proposed that instead of solely focusing on cutting expenses, governments should explore measures like increasing efficiency, eliminating waste, and promoting economic growth to effectively manage their budgets.
Overall, LectureNotes argued that while decreasing government spending may seem like a solution to reduce public debt and deficits, it is crucial to consider the potential negative consequences on public services and the economy.