A political columnist wrote the following: "Today the
main purpose [of government's issuing bonds] is to let craven politicians
launch projects they know the public, at the moment, would rather not fully
finance. The tab for these projects will not come due, probably, until after
the politicians have long since departed for greener (excuse the expression)
pastures."
1) Do you agree with this commentator's explanation for why
some government spending is financed through tax receipts and other government
spending is financed through borrowing, by issuing bonds? Explain.
2) How has your understanding and outlook about government
policies and elected officials changed after studying this chapter or has it
remained the same? Explain.
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