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The Effects Of Deficit Spending On The United States

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Any person struggling through difficult times will seek out other means of financial support including borrowing money that may be harder to pay back in the future. The United States will often follow a similar path and spend more money than it earns. Deficit spending in the United States comes with some advantages, disadvantages, and strong criticism. Some feel deficit spending is good for getting the economy back in motion while others contend it does nothing for the economy. The effects of deficit spending are carefully examined to determine if the United States is improving or degrading the future of the economy. Deficit spending will occur when the government or even a business spends more money that what it makes in revenue (“Governmental Deficit Spending,” n.d.). It seems like this technique would only have to be used every once in a while. However, deficit spending is a fairly common practice by the government and many businesses, but could spell doom if there is failure to plan accordingly when paying off the debt (“Governmental Deficit Spending,” n.d.). For the government, it is used as an instrument to stimulate economic growth while asserting it still has some type of financial stability (“Governmental Deficit Spending,” n.d.). There are great advantages the government can claim as being beneficial for the economy when practicing deficit spending. People do not usually go out and spend a lot of their money when the country is experiencing economic

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