Deficit spending, good or bad? By Robert McCoy American Public University ECON 102 Prof. Danielle Babb Deficit spending is it good or bad? Deficit spending can be considered to be a bad thing because if the government is spending more than their revenues are bringing in then they are creating a higher debt ratio. Even if the government borrows the money to increase the deficit spending to generate more consumer spending the downside to the excess borrowing is the increase of interest rates in America. The more that our government spends to expand the deficit to create more jobs and more consumer spending also creates a higher debt. In borrowing from foreign nations shows other nations that we have a weakness concerning our financial infrastructure and borrowing from other nations it’s like an individual going to a loan shark to borrow money and when the individual can’t pay it back the loan sharks come to collect and borrowing from other nations is such a similar situation. The question is what is deficit spending? Deficit spending is considered to be a disaster for a nation who has to borrow money from another nation in order to become a …show more content…
So the best way to define deficit spending is that the federal government borrows a lot of money to create jobs, increase consumer spending. Deficit spending is said to be or will do major damage to our economy and with the hysteria of deficit spending the government claims that in order to have a better budget they must make cuts. When they said they have to make cuts as of recently they have made or attempted to make affected several serious programs such as Social Security, Medicare\Medicaid, and programs like the food stamps and educational