This model illustrates the current practice and consequences of government spending. Following the
direction of the arrows from right to left the model shows the following sequence
based on current practice:
Government
Spending at a certain point leads to spending in excess of tax receipts. This
will automatically lead to the issue of treasuries in the belief that the excess
spending must be financed by borrowing (although the government has the capacity
to create money). This in turn will
increase the national debt.
Consequences that follow from this practice:
1) That national
debt increases whenever the government spends in excess of tax receipts.
2) That the
government must pay interest on the debt issued, which in turn increases and
reinforces the need for government spending.
3) That the
interest paid on treasuries will increase private sector income.
There is an
alternative view, supported by Modern Monetary Theory, of how government spending
can proceed. Please see this Insight:
This page provides a structural analysis of POTUS Candidate Jim Gilmore's
economic policy based on the information at: http://www.gilmoreforamerica.com/jims-growth-code/ The method used is Integrative
Propositional Analysis (IPA)
available:
http://scipolicy.org/uploads/3/4/6/9/3469675/wallis_white_paper_-_the_ipa_answer_2014.12.11.pdf
From Jennifer Prah Ruger (2010) Health Capability Conceptualization and Operationalization Am J Public Health 100 p41-49 available from SSRN. Extends Insight 779 with Dahlgren and Whitehead's Sunrise Diagram of Social Determinants of Health added. See also wikipedia Capability Approach
