Deficit spending

Deficit spending,

Definition of Deficit spending:

  1. The concept of deficit spending as economic stimulus is typically credited to the liberal British economist John Maynard Keynes. In his 1936 book The General Theory of Employment, Interest and Employment, Keynes argued that during a recession or depression, a decline in consumer spending could be balanced by an increase in government spending.

  2. Government spending, in excess of revenue, of funds raised by borrowing rather than from taxation.

  3. Alternative term for deficit financing.

  4. In the simplest terms, deficit spending is when a government's expenditures exceed its revenues during a fiscal period, causing it to run a budget deficit. The phrase "deficit spending" often implies a Keynesian approach to economic stimulus, in which the government takes on debt while using its spending power to create demand and stimulate the economy.

How to use Deficit spending in a sentence?

  1. British economist John Maynard Keynes is the most well-known proponent of deficit spending as a form of economic stimulus.
  2. As in Chile, this massive redirection of funds from government deficit spending into private investment could raise U.S. economic growth to a new level altogether.
  3. Deficit spending often refers to intentional excess spending meant to stimulate the economy.
  4. Deficit spending occurs when government spending exceeds its revenue.

Meaning of Deficit spending & Deficit spending Definition