Deficit Spending

Deficit spending is the amount by which a government, private company, or individual's spending exceeds income over a particular period of time, also called simply "deficit", or "budget deficit", the opposite of budget surplus.

Government deficit spending is a central point of controversy in economics, as discussed below.

Read more about Deficit SpendingControversy, Government Deficits, Government Deficits: Good or Bad?

Other articles related to "deficit spending, deficit, spending, deficits":

Government Budget Balance - Deficit Spending - Crowding-out Hypothesis
... that when a government experiences a deficit, the choice to borrow to offset that deficit draws on the pool of resources available for investment and private investment ...
Henry Morgenthau, Jr. - Fiscal Responsibility
... because it strengthened the party's political base and involved no new spending ... Morgenthau was unable to persuade Roosevelt to desist from continued deficit spending ... Roosevelt continued to push for more spending, and Morgenthau promoted a balanced budget ...
Deficit Spending - Government Deficits: Good or Bad? - Automatic Vs. Active Deficit Policies
... use of automatic stabilization over active or discretionary use of deficits to fight mild recessions (or surpluses to combat inflation) ... and the increased debt encouraged inflation, reinforcing the effect of Vietnam war deficit spending ...
IS/LM Model - Shifts
... One hypothesis is that a government's deficit spending ("fiscal policy") has an effect similar to that of a lower saving rate or increased private fixed ... An increased deficit by the national government shifts the IS curve to the right ... the graph indicates one of the major criticisms of deficit spending as a way to stimulate the economy rising interest rates lead to crowding out – i.e ...
Evaluation of New Deal Policies - Recovery - Keynesian Interpretation
... At the beginning of the Great Depression many economists traditionally argued against deficit spending that government spending would "crowd out" private investment and spending ... They argued that by spending vastly more money—using fiscal policy—the government could provide the needed stimulus through the multiplier effect ... House in 1934 to urge President Roosevelt to increase deficit spending ...

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