Daniel Lacalle: Government spending is not a tool for economic growth

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Government spending not true growth

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Mikhail Vnuchkov

4 hours ago

Daniel Lacalle: Government spending is not a tool for economic growth — Government spending not true growth

Daniel Lacalle, chief economist and investment manager at Tressis Gestion, argues that government spending does not serve as a sustainable tool for economic growth.

He claims that including debt-funded government expenditure and public sector jobs in GDP and employment metrics constitutes a statistical distortion, as the costs are ultimately covered by taxpayers both now and in the future. Lacalle adds that policymakers can artificially inflate growth and job figures by increasing money supply, challenging the effectiveness of such approaches.

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Lacalle has previously highlighted rising demand for U.S. assets as the U.S. dollar index climbed above 100, according to a recent note. He also commented on U.S. WTI oil prices falling below $69 per barrel as geopolitical risks eased and supply conditions normalized, as reported in an earlier article. These observations reflect Lacalle’s continued monitoring of global market metrics alongside his critiques of fiscal policy.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.

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