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As a government, you could tax more than you spend, generate a surplus, and funnel these government savings into investment. Or you could encourage foreign
As a government, you could tax more than you spend, generate a surplus, and funnel these government savings into investment. Or you could encourage foreign investment. Or you could try to encourage private savings. One way to do this would be to reduce taxes on capital gains, that is, taxes incurred on the returns from savings. Or you could reduce corporate taxation, so more of the profits of growth go back to the business people whose behavior led to that growth. These policies may encourage investment. What are the problems with these policies
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