These rules have been made in order to find a straightforward way to account for economic activity. Yet, when you consider the combined weaknesses of accounting conventions–government is lumped with households as a ‘final’ consumer; government cannot make a surplus, earn returns, increase its productivity or raise value added through market production–you can’t help but notice that, while every effort has been made to depict finance as productive, the opposite seems to be true for government. Simply because of the way that productivity is defined, the fact that government expenditure is higher
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