Structural considerations taken into account, it will be much easier to public investment fits into fiscal policy. This in turn makes it possible to assess scale of public debt and whether it presents any problems:

An example will best illustrate how. If interest payments become a major budgetary item, as they did in Canada in the 1980s, a government may impose measures to download on regional or municipal levels, again as Canada did in the 1990s. This will however require cutbacks in lower level services such as road maintenance and municipal support for such services as welfare, as happened in such cities as Toronto, Ontario. Since such cities continue to pay taxes, ultimately, a lower percentage goes to local, and more to regional and federal priorities. In Toronto, 93 cents of each dollar collected in taxes is spent outside that city — this in turn can lead to the social unrest and declining quality of life that will trigger an exodus of talent for the city's instructional capital and individual capital dependent industries: arts, finance, insurance, etc., and thus a decline in the tax base.

See also

• Government debt
• Government ownership