deficit spending

noun

: the spending of public funds raised by borrowing rather than by taxation

Examples of deficit spending in a Sentence

Recent Examples on the Web
Examples are automatically compiled from online sources to show current usage. Read More Opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback.
But after the world abandoned the Bretton Woods system in the early 1970s, governments—including the U.S. government—learned to allay the costs of unemployment either by lowering interest rates to encourage consumer lending or through unrestricted deficit spending. Michael Pettis, Foreign Affairs, 21 Apr. 2025 To counter those deficit spending effects, House GOP leaders have vowed to cut at least $1.5 trillion from federal programs over the next 10 years. Mike Lillis, The Hill, 16 Apr. 2025 Nonetheless, deficit spending has persisted to a significant degree under recent Republican and Democratic presidents. Thomas G. Moukawsher, MSNBC Newsweek, 13 Apr. 2025 That deficit spending is driving world war levels of debt and will bankrupt the country. CBS News, 30 Mar. 2025 See All Example Sentences for deficit spending

Word History

First Known Use

1938, in the meaning defined above

Time Traveler
The first known use of deficit spending was in 1938

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Cite this Entry

“Deficit spending.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/deficit%20spending. Accessed 5 May. 2025.

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