TAXATION INVESTMENT.PART 2

We make bold to say government has not yet find a formula for prosperity GDP.Until we do we shall not be able to guarantee universal prosperity.if government debt should balloon more than the size of GDP,then it is apposite to ensure and guarantee capability of public spending to balloon also above the size of GDP.Govt capability to control severe inflation and unemployment should not be driven by production function itself a direct outcome of public spending.Normally,reduction of taxes including personal taxes releasing more disposable income and business taxes,enabling growth in business investment.Consequently,growth in public spending also increases consumption.In the period of high inflation,downward shift in agregate spending leads to reduced spending.To achieve the objectives it increases taxes both personal and business and cut government spending.Classical economics may be right that over time economy would rectify itself.This may not be possible if the right automatic in built stabiliser strategy is