  There is, among the economist ecosystem, the idea of virtuous public spending
as a form of promotion of economic growth. If we think on the way GDP is
measured, it is not possible to get that conclusion because it becomes
circular: measuring the money flow obviously will detect directly the public
spending but always mixed with the flow of money from other sources. The
question is how virtuous is public spending per se? Can it promote economic
growth? Is there multiplicative effect in GDP bigger than 1? In this paper, we
make use of the first principles of Economics to show that government spending
is, at the most, as virtuous as private consumption and can be a source of
economic depression and inequality if it is not restricted to fundamental
services.
