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Deficit Spending

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Deficit spending
When government spending overwhelms government revenue resulting in government borrowing.

Deficit Spending
A situation in which a company, or especially a government, spends more money than it collects for a given period of time, usually a quarter or a year. Companies and government finance deficit spending with borrowing; for example, the U.S. government could issue Treasury securities. Some economic theories, notably Reaganomics and Keynesian economics, minimize the importance of government deficit spending, especially during recessions. However, deficit spending adds debt, which can be detrimental in the long term. See also: national debt.

deficit spending
Expenditures that are in excess of revenues during a given period of time. Deficit spending is generally applied to governmental units, but the concept is equally applicable to private businesses.


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The ballooning debt reflects the massive deficit spending by the government in an effort to revive an ailing economy over more than one year.
He also argued that he had little choice but to mandate high levels of deficit spending to stimulate the economy, amid the deepest economic crisis in decades.
Those headline-making figures deal with the government's tax intake, deficit spending, and borrowing.
 
 
 
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