Recent Examples of deficit spending from the Web
In 1978 West Germany agreed to stimulate its economy with deficit spending to help the U.S. narrow its trade deficit.
At the same time, a great deal of the trade deficit is made possible by U.S. government deficit spending, so reining that in could actually reduce the trade deficit.
It’s been developed over the years by a group of unorthodox economists who call their school of thought Modern Monetary Theory, and argue that there’s more room for deficit spending than is widely believed.
The amendment would ban deficit spending, require that spending not exceed 20 percent of gross domestic product, and require a majority to increase taxes and three-fifths majorities to raise the debt limit.
John Maynard Keynes, perhaps the most influential economist of the 20th century, championed deficit spending during recessions to boost aggregate demand.
Tax cuts for the rich funded by deficit spending are unpopular — but ones funded by slashing grandma’s Social Security check is an invitation to guillotines.
After years of deficit spending, Lincoln-Way has been on the state's financial watch since 2015, and coupled with declining enrollment was forced to close Lincoln-Way North High School in June 2016.
Taxes and debt: For years Republicans claimed the high ground on deficit spending.
These example sentences are selected automatically from various online news sources to reflect current usage of the word 'deficit spending.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.
Financial Definition of DEFICIT SPENDING
What It Is
How It Works
Fiscal deficits occur when a government's expenditures exceed its revenue. A government usually borrows money (by issuing Treasury securities or similar instruments) to fill the gap or "fund the deficit."
Trade deficits (also called current account deficits) occur when a country imports more than it exports.
Why It Matters
Deficit spending is controversial. The famous economist John Maynard Keynes argued that it stimulated economies by giving governments the money to purchase goods and services and were thus particularly useful for getting countries out of recessions. However, many scholars also argue that governments should not engage in deficit spending regularly because the mountain of debt they create makes for unsustainable economies in the long run.
Learn More about deficit spending
Seen and Heard
What made you want to look up deficit spending? Please tell us where you read or heard it (including the quote, if possible).