Over the long term, if government revenues continue to be more than expenditures (surplus), then the economic health of the country improves, because the government can afford to invest in development projects such as research and development, education and infrastructure. With more income, the government can also afford to lower taxes, which increases corporate profits and attracts more foreign investors, resulting in more economic activities, creating more jobs and enlarging consumer spending and government revenues despite income tax cuts. It is what I call a virtuous economic cycle.

Med Jones

Med Jones is the president of International Institute of Management - A US based think tank specializing in applied strategy in the fields of economics, financial markets, and business operations. Jones is one of the few experts who predicted the global financial crises of 2008. In 2006 he warned about three crises to hit the US in the decade from 2007-2017; the burst of the housing bubble, US national debt, and the social security deficit. His statements and predictions are followed by economic researchers and investment analysts around the world. He is also noted for his contribution of the second generation of Gross National Happiness (GNH) framework, also known as GNH Economics.

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