How much should a government spend?

Determining how much money to spend and what to spend it on has always been a problem for governments worldwide, and also presents an important problem for those people playing Civilization IV as they determine how to allocate their resources. Throughout history many different views have been taken, in many different places, on the role the government should play in the economy. Systems ranged from Marxism to Laissez-faire, with economists claiming each were the best at different time periods and in different nations. In addition, the amount that a government deficit should be has also changed drastically over time, with some economists believing there should not be a deficit at all, and others believing that you had to put money into the economy in order to get money out. All these men beleived they were right, and there is no definite answer, making this one of the most difficult questions to answer, both in the real world and in the game.

According to Heilbroner, during the New Deal of the 1930s the government decided that they were going to spend money in order to benefit society and help to reinvigorate the economy. By creating and funding a GI bill the government allowed "the American system of higher education to grow in leaps and bounds." (140) In addition, during the Cold War massive government spending occured in order to remain equal, or better, than the Soviet Union in the arena of nuclear weapons. Moreover, the government spent a great deal of money on a network of highways that would run nationwide and make transportation within the United States much easier and efficient. Airports were also built at this time to make air travel more affordable and turn it into the travel business that we know so well today. All of these positive changes helped to make American society better for all those citizens living in it, and the government spending clearly was what enabled this to happen, ultimately helping instead of hurting the economy.

While playing the game Civilzation IV the same kind of decisions need to be made, what to build, how much to spend and what resources to use in order to best stablize or invigorate the economy. While the answer to the question of how much the government should spend is never easy, it is clear that government spending is almost always neccessary in order for big projects to be successful. Without government spending things such as air travel and a road system would be nearly impossible to achieve without disastorous effects. In addition, international trade would be almost impossible without officials to regulate and determine the value of different currencies and products. While playing the game it is important to remember that the government should spend money for valuable programs and developments, and also for necessary wars, but should not over-spend because it could lead to the demise of the entire nation. While this happy medium is often difficult to find, it is not impossible, and those players of the game should pay attention to important details and financial situations to ensure that they are making the best decision possible.