Advantages And Disadvantages Of Deficit Spending
Deficit Spending
Norman Harris
American Military University
29 January 2017
Deficit Spending Deficit spending is based off the Keynesian ideology of macroeconomics which, in part, believes the government can be used to stimulate the economy. Deficit spending occurs when a government spends more money than what it takes in over a fiscal period, creating or increasing a government debt balance. Government deficits gets it money through the sale of public securities; an example of public securities are government bonds (Roots, nd). Deficit spending is an intentionally calculated plan included in the yearly fiscal budget of the President and Congress to help stimulate the economy (Amadeo, 2016). The roles of deficit spending
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Deficit spending, if used properly, helps the government to stimulate and helps the economy rebound from a recession. With the government assistance, unemployment is kept to its lowest possible rate and slowly encourage the consumers to buy goods and services by regulating interest rates. The upside of the short and long terms goals are more advantageous to the disadvantages of deficit spending.
References
Amadeo, K. (2016, December 22). Deficit Spending Is Out of Control. Here 's Why. Retrieved January 29, 2017, from https://www.thebalance.com/deficit-spending-causes-why-it-s-out-of-control-3306289
Greengarage. (2017, January 13). 6 Pros and Cons of Deficit Spending. Retrieved January 29, 2017, from http://greengarageblog.org/6-pros-and-cons-of-deficit-spending
Investopedia. (2015, January 09). Crowding Out Effect. Retrieved January 29, 2017, from http://www.investopedia.com/video/play/crowding-out-effect/
Root. (2008, February 27). Deficit Spending. Retrieved January 29, 2017, from http://www.investopedia.com/terms/d/deficit-spe
Ross, S. (2015, January 27). What is the role of deficit spending in fiscal policy? Retrieved January 29, 2017, from
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