Answer:
Because all levels of government need to use economic resources to generate quality public goods.
Explanation:
All levels of government take money from the productive sector and spend it for the purpose of generating public goods. From a Keynesian point of view, this system is beneficial for the economy, because according to such a school of economic thought, government spending stimulates demand and this generates economic growth through the famous "Keynesian multiplier."
In this sense, an increase in government spending very simply means that the government will generate more public goods, the result of which is that the government will either raise taxes to meet these new expenditures or become even more indebted - the government. This means that given that the government is taking more credit, there will be less credit available to finance productive ventures.
