Is There a Difference Between Government Spending and Bank Loans?

Government spending actually increases its mirrored by an increase in net worth in the private sector into our balance sheet. That's a super important point. Rather than taking money from the public, a deficit creates money for the public and creates equity as well. And that's where it differs from what happens with a bank loan. So your spending of seeds, taxation, and equity is falling. The public's equity on the other hand is spend minus tax.

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