Treasury View

The Treasury View is a government economic perspective that suggests public spending, like government investments or stimulus, doesn't directly boost economic growth or employment because it’s offset by increased taxes or borrowing. In other words, it believes that government borrowing to fund spending might just squeeze out private investment or future taxes, leaving the overall economy unchanged. This view emphasizes that, in the long run, government fiscal policy has limited impact on economic activity, focusing instead on other factors like monetary policy or private sector decisions.