Government spending - systemic sink or source

Here a model on the difference between systemic sinks and systemic sources of government spending. In includes the creation of money, the decoupling of the financial markets from the real economy. What is interesting is the fact that even a sink somehow contributes to the reinforcing feedback loops of the economy, an argument that is widely used by big capital promoters that say that they consume the most and pay the highest taxes. After all the weighting of the connections is crucial and however we weight the connection a part of the productivity is lost when money isn't reinvested into the real economy and people as governments making debts can lead to a greater wealth disparity and even a collapse when the interest rates are too high or the governments isn't investing into sources like education or infrastructure.
However, it would be interesting to continue this model and include productivity gains that create problems for low skilled workers. Also inflation would be interesting to be included but there are additional models on this on KNOW-WHY.NET.

The (blue) balancing feedback loop of the systemic sink.

The reinforcing feedback loops of the systemic sources. They directly trigger a systemic source.

The counterargument of the 'dark side of the force' ;-) that the jobs they create and their taxes fuel the economy. But they only indirectly help the systemic sources.

The Insight Matrix allows to compare the measures the government (and the central bank) can take. Spending on arms with the current weighting of the connections is the worst choice but yet a little bit of a source.

Long term tax increases interestingly become increasingly positive.

Another surprise is that making debts remains increasingly negative (at least as long as we do not consider inflation and a prospering economy after a debt financed investment into systemic sources)

The bar chart is just an alternative view of the Insight Matrix.