Dr. John Maynard Keynes is known as the savior of capitalism. He pointed out that a “faucet” to stimulate economic activity was required during a period of unemployment in order to enable the economy to grow, and to reduce the ranks of the unemployed.
At this point, we will merely hint that the “magic faucet” is closely associated with expenses:
Expenses must be incurred – both in terms of the private and public “faucets” – to facilitate the purchase of goods.
For the sake of simplicity, the explanation will refer to a closed economy, i.e. an economy that neither imports nor exports.