PUBLIC SPENDING AS THE MOST IMPORTANT TOOL OF STATE ECONOMIC POLICY IN THE 20TH AND 21ST CENTURIES

Abstract

Relevance of the topic. Throughout the 20th century and early 21st century, developed countries have widely used macroeconomic instruments to strengthen their global dominance and influence the balance of power in the international arena. Among these instruments, government spending has proven to be a crucial tool for stimulating economic growth, ensuring sovereign economic development, and exerting significant pressure on competing economies. In the context of current geopolitical tensions, the Keynesian approach has gained increasing popularity in the economic strategies of leading countries around the world. China, the United States of America, the European Union, and Russia are pursuing large-scale macroeconomic stimulus policies based on Keynesian theory, with government spending as the central element. The Goal is to justify the role of government spending as a crucial factor in the dynamic socioeconomic development of the national economy in today's conditions. Methodology. The study is based on a systematic approach to the study of multi-level socio-economic systems. In the process of developing the research problematics, the authors implemented the general scientific (dialectical) method of cognition, used historical, comparative, and institutional analysis, methods of scientific abstraction, induction, and deduction, as well as tabular and graphical forms of interpretation of the processes and phenomena under consideration. To identify the strategic directions for the development of national economies, a content analysis of the speeches of the Chinese and Russian leadership was conducted. Results and conclusions. The practice of using public spending by the world's leading powers has been studied. It has been illustrated that the United States is at the forefront of using the Keynesian multiplier as a geoeconomic tool. Since the 2008 crisis, during the COVID-19 pandemic, the U.S. government has implemented extensive stimulus programs for the national economy, amounting to nearly $1,900 billion. Public spending is also actively used as a macroeconomic policy tool by the Chinese government, which seeks to secure technological leadership and shift the global economic balance in its favor. In the current conditions of increasing inter-country competition, the Keynesian multiplier of government spending plays a crucial role in determining the balance of power on a global scale. This necessitates an increase in government spending in the Russian Federation, which should be aimed at stimulating the national economy and its technological development. Scope of application: Macroeconomic policy and state regulation of the economy.