Government Deficit Spending: An Analysis

Abstract

In the last ten years the phrase, government deficit spending, has become a common household term and the center of many discussions concerning the economics of government fiscal policy. Webster's Dictionary defines the word deficit as follows, "the amount by which a sum of money is less than what is expected, due, needed, etc.: shortage" Thus, government deficit spending is said to exist, when the government spends more money on its various programs than it takes in by way of taxes and their revenue.