CINXE.COM

<!DOCTYPE html> <html class="client-nojs vector-feature-language-in-header-enabled vector-feature-language-in-main-page-header-disabled vector-feature-page-tools-pinned-disabled vector-feature-toc-pinned-clientpref-1 vector-feature-main-menu-pinned-disabled vector-feature-limited-width-clientpref-1 vector-feature-limited-width-content-enabled vector-feature-custom-font-size-clientpref-1 vector-feature-appearance-pinned-clientpref-1 vector-feature-night-mode-enabled skin-theme-clientpref-day vector-sticky-header-enabled vector-toc-available" lang="en" dir="ltr"> <head> <meta charset="UTF-8"> <title>Deficit spending - Wikipedia</title> <script>(function(){var className="client-js vector-feature-language-in-header-enabled vector-feature-language-in-main-page-header-disabled vector-feature-page-tools-pinned-disabled vector-feature-toc-pinned-clientpref-1 vector-feature-main-menu-pinned-disabled vector-feature-limited-width-clientpref-1 vector-feature-limited-width-content-enabled vector-feature-custom-font-size-clientpref-1 vector-feature-appearance-pinned-clientpref-1 vector-feature-night-mode-enabled skin-theme-clientpref-day vector-sticky-header-enabled vector-toc-available";var cookie=document.cookie.match(/(?:^|; )enwikimwclientpreferences=([^;]+)/);if(cookie){cookie[1].split('%2C').forEach(function(pref){className=className.replace(new RegExp('(^| )'+pref.replace(/-clientpref-\w+$|[^\w-]+/g,'')+'-clientpref-\\w+( |$)'),'$1'+pref+'$2');});}document.documentElement.className=className;}());RLCONF={"wgBreakFrames":false,"wgSeparatorTransformTable":["",""],"wgDigitTransformTable":["",""],"wgDefaultDateFormat":"dmy", "wgMonthNames":["","January","February","March","April","May","June","July","August","September","October","November","December"],"wgRequestId":"d4b43df2-7e91-4dc1-9b89-a2e8fec92dff","wgCanonicalNamespace":"","wgCanonicalSpecialPageName":false,"wgNamespaceNumber":0,"wgPageName":"Deficit_spending","wgTitle":"Deficit spending","wgCurRevisionId":1275567036,"wgRevisionId":1275567036,"wgArticleId":268487,"wgIsArticle":true,"wgIsRedirect":false,"wgAction":"view","wgUserName":null,"wgUserGroups":["*"],"wgCategories":["Articles with short description","Short description matches Wikidata","Articles needing additional references from June 2023","All articles needing additional references","Use mdy dates from July 2024","All articles with unsourced statements","Articles with unsourced statements from April 2014","Articles with unsourced statements from May 2015","Commons category link is on Wikidata","CS1 maint: postscript","Deficit spending","Government spending","Keynesian economics"], "wgPageViewLanguage":"en","wgPageContentLanguage":"en","wgPageContentModel":"wikitext","wgRelevantPageName":"Deficit_spending","wgRelevantArticleId":268487,"wgIsProbablyEditable":true,"wgRelevantPageIsProbablyEditable":true,"wgRestrictionEdit":[],"wgRestrictionMove":[],"wgRedirectedFrom":"Budget_deficit","wgNoticeProject":"wikipedia","wgCiteReferencePreviewsActive":false,"wgFlaggedRevsParams":{"tags":{"status":{"levels":1}}},"wgMediaViewerOnClick":true,"wgMediaViewerEnabledByDefault":true,"wgPopupsFlags":0,"wgVisualEditor":{"pageLanguageCode":"en","pageLanguageDir":"ltr","pageVariantFallbacks":"en"},"wgMFDisplayWikibaseDescriptions":{"search":true,"watchlist":true,"tagline":false,"nearby":true},"wgWMESchemaEditAttemptStepOversample":false,"wgWMEPageLength":40000,"wgInternalRedirectTargetUrl":"/wiki/Deficit_spending","wgEditSubmitButtonLabelPublish":true,"wgULSPosition":"interlanguage","wgULSisCompactLinksEnabled":false,"wgVector2022LanguageInHeader":true,"wgULSisLanguageSelectorEmpty": false,"wgWikibaseItemId":"Q17010135","wgCheckUserClientHintsHeadersJsApi":["brands","architecture","bitness","fullVersionList","mobile","model","platform","platformVersion"],"GEHomepageSuggestedEditsEnableTopics":true,"wgGETopicsMatchModeEnabled":false,"wgGEStructuredTaskRejectionReasonTextInputEnabled":false,"wgGELevelingUpEnabledForUser":false};RLSTATE={"ext.globalCssJs.user.styles":"ready","site.styles":"ready","user.styles":"ready","ext.globalCssJs.user":"ready","user":"ready","user.options":"loading","ext.cite.styles":"ready","skins.vector.search.codex.styles":"ready","skins.vector.styles":"ready","skins.vector.icons":"ready","jquery.makeCollapsible.styles":"ready","ext.wikimediamessages.styles":"ready","ext.visualEditor.desktopArticleTarget.noscript":"ready","ext.uls.interlanguage":"ready","wikibase.client.init":"ready","ext.wikimediaBadges":"ready"};RLPAGEMODULES=["mediawiki.action.view.redirect","ext.cite.ux-enhancements","mediawiki.page.media","ext.scribunto.logs","site", "mediawiki.page.ready","jquery.makeCollapsible","mediawiki.toc","skins.vector.js","ext.centralNotice.geoIP","ext.centralNotice.startUp","ext.gadget.ReferenceTooltips","ext.gadget.switcher","ext.urlShortener.toolbar","ext.centralauth.centralautologin","mmv.bootstrap","ext.popups","ext.visualEditor.desktopArticleTarget.init","ext.visualEditor.targetLoader","ext.echo.centralauth","ext.eventLogging","ext.wikimediaEvents","ext.navigationTiming","ext.uls.interface","ext.cx.eventlogging.campaigns","ext.cx.uls.quick.actions","wikibase.client.vector-2022","ext.checkUser.clientHints","ext.growthExperiments.SuggestedEditSession"];</script> <script>(RLQ=window.RLQ||[]).push(function(){mw.loader.impl(function(){return["user.options@12s5i",function($,jQuery,require,module){mw.user.tokens.set({"patrolToken":"+\\","watchToken":"+\\","csrfToken":"+\\"}); }];});});</script> <link rel="stylesheet" href="/w/load.php?lang=en&modules=ext.cite.styles%7Cext.uls.interlanguage%7Cext.visualEditor.desktopArticleTarget.noscript%7Cext.wikimediaBadges%7Cext.wikimediamessages.styles%7Cjquery.makeCollapsible.styles%7Cskins.vector.icons%2Cstyles%7Cskins.vector.search.codex.styles%7Cwikibase.client.init&only=styles&skin=vector-2022"> <script async="" src="/w/load.php?lang=en&modules=startup&only=scripts&raw=1&skin=vector-2022"></script> <meta name="ResourceLoaderDynamicStyles" content=""> <link rel="stylesheet" href="/w/load.php?lang=en&modules=site.styles&only=styles&skin=vector-2022"> <meta name="generator" content="MediaWiki 1.44.0-wmf.18"> <meta name="referrer" content="origin"> <meta name="referrer" content="origin-when-cross-origin"> <meta name="robots" content="max-image-preview:standard"> <meta name="format-detection" content="telephone=no"> <meta property="og:image" content="https://upload.wikimedia.org/wikipedia/commons/thumb/c/cd/Government-Vedder-Highsmith-detail-1.jpeg/1200px-Government-Vedder-Highsmith-detail-1.jpeg"> <meta property="og:image:width" content="1200"> <meta property="og:image:height" content="761"> <meta property="og:image" content="https://upload.wikimedia.org/wikipedia/commons/thumb/c/cd/Government-Vedder-Highsmith-detail-1.jpeg/800px-Government-Vedder-Highsmith-detail-1.jpeg"> <meta property="og:image:width" content="800"> <meta property="og:image:height" content="507"> <meta property="og:image" content="https://upload.wikimedia.org/wikipedia/commons/thumb/c/cd/Government-Vedder-Highsmith-detail-1.jpeg/640px-Government-Vedder-Highsmith-detail-1.jpeg"> <meta property="og:image:width" content="640"> <meta property="og:image:height" content="406"> <meta name="viewport" content="width=1120"> <meta property="og:title" content="Deficit spending - Wikipedia"> <meta property="og:type" content="website"> <link rel="preconnect" href="//upload.wikimedia.org"> <link rel="alternate" media="only screen and (max-width: 640px)" href="//en.m.wikipedia.org/wiki/Deficit_spending"> <link rel="alternate" type="application/x-wiki" title="Edit this page" href="/w/index.php?title=Deficit_spending&action=edit"> <link rel="apple-touch-icon" href="/static/apple-touch/wikipedia.png"> <link rel="icon" href="/static/favicon/wikipedia.ico"> <link rel="search" type="application/opensearchdescription+xml" href="/w/rest.php/v1/search" title="Wikipedia (en)"> <link rel="EditURI" type="application/rsd+xml" href="//en.wikipedia.org/w/api.php?action=rsd"> <link rel="canonical" href="https://en.wikipedia.org/wiki/Deficit_spending"> <link rel="license" href="https://creativecommons.org/licenses/by-sa/4.0/deed.en"> <link rel="alternate" type="application/atom+xml" title="Wikipedia Atom feed" href="/w/index.php?title=Special:RecentChanges&feed=atom"> <link rel="dns-prefetch" href="//meta.wikimedia.org" /> <link rel="dns-prefetch" href="login.wikimedia.org"> </head> <body class="skin--responsive skin-vector skin-vector-search-vue mediawiki ltr sitedir-ltr mw-hide-empty-elt ns-0 ns-subject mw-editable page-Deficit_spending rootpage-Deficit_spending skin-vector-2022 action-view"><a class="mw-jump-link" href="#bodyContent">Jump to content</a> <div class="vector-header-container"> <header class="vector-header mw-header"> <div class="vector-header-start"> <nav class="vector-main-menu-landmark" aria-label="Site"> <div id="vector-main-menu-dropdown" class="vector-dropdown vector-main-menu-dropdown vector-button-flush-left vector-button-flush-right" title="Main menu" > <input type="checkbox" id="vector-main-menu-dropdown-checkbox" role="button" aria-haspopup="true" data-event-name="ui.dropdown-vector-main-menu-dropdown" class="vector-dropdown-checkbox " aria-label="Main menu" > <label id="vector-main-menu-dropdown-label" for="vector-main-menu-dropdown-checkbox" class="vector-dropdown-label cdx-button cdx-button--fake-button cdx-button--fake-button--enabled cdx-button--weight-quiet cdx-button--icon-only " aria-hidden="true" ><span class="vector-icon mw-ui-icon-menu mw-ui-icon-wikimedia-menu"></span> <span class="vector-dropdown-label-text">Main menu</span> </label> <div class="vector-dropdown-content"> <div id="vector-main-menu-unpinned-container" class="vector-unpinned-container"> <div id="vector-main-menu" class="vector-main-menu vector-pinnable-element"> <div class="vector-pinnable-header vector-main-menu-pinnable-header vector-pinnable-header-unpinned" data-feature-name="main-menu-pinned" data-pinnable-element-id="vector-main-menu" data-pinned-container-id="vector-main-menu-pinned-container" data-unpinned-container-id="vector-main-menu-unpinned-container" > <div class="vector-pinnable-header-label">Main menu</div> <button class="vector-pinnable-header-toggle-button vector-pinnable-header-pin-button" data-event-name="pinnable-header.vector-main-menu.pin">move to sidebar</button> <button class="vector-pinnable-header-toggle-button vector-pinnable-header-unpin-button" data-event-name="pinnable-header.vector-main-menu.unpin">hide</button> </div> <div id="p-navigation" class="vector-menu mw-portlet mw-portlet-navigation" > <div class="vector-menu-heading"> Navigation </div> <div class="vector-menu-content"> <ul class="vector-menu-content-list"> <li id="n-mainpage-description" class="mw-list-item"><a href="/wiki/Main_Page" title="Visit the main page [z]" accesskey="z"><span>Main page</span></a></li><li id="n-contents" class="mw-list-item"><a href="/wiki/Wikipedia:Contents" title="Guides to browsing Wikipedia"><span>Contents</span></a></li><li id="n-currentevents" class="mw-list-item"><a href="/wiki/Portal:Current_events" title="Articles related to current events"><span>Current events</span></a></li><li id="n-randompage" class="mw-list-item"><a href="/wiki/Special:Random" title="Visit a randomly selected article [x]" accesskey="x"><span>Random article</span></a></li><li id="n-aboutsite" class="mw-list-item"><a href="/wiki/Wikipedia:About" title="Learn about Wikipedia and how it works"><span>About Wikipedia</span></a></li><li id="n-contactpage" class="mw-list-item"><a href="//en.wikipedia.org/wiki/Wikipedia:Contact_us" title="How to contact Wikipedia"><span>Contact us</span></a></li> </ul> </div> </div> <div id="p-interaction" class="vector-menu mw-portlet mw-portlet-interaction" > <div class="vector-menu-heading"> Contribute </div> <div class="vector-menu-content"> <ul class="vector-menu-content-list"> <li id="n-help" class="mw-list-item"><a href="/wiki/Help:Contents" title="Guidance on how to use and edit Wikipedia"><span>Help</span></a></li><li id="n-introduction" class="mw-list-item"><a href="/wiki/Help:Introduction" title="Learn how to edit Wikipedia"><span>Learn to edit</span></a></li><li id="n-portal" class="mw-list-item"><a href="/wiki/Wikipedia:Community_portal" title="The hub for editors"><span>Community portal</span></a></li><li id="n-recentchanges" class="mw-list-item"><a href="/wiki/Special:RecentChanges" title="A list of recent changes to Wikipedia [r]" accesskey="r"><span>Recent changes</span></a></li><li id="n-upload" class="mw-list-item"><a href="/wiki/Wikipedia:File_upload_wizard" title="Add images or other media for use on Wikipedia"><span>Upload file</span></a></li><li id="n-specialpages" class="mw-list-item"><a href="/wiki/Special:SpecialPages"><span>Special pages</span></a></li> </ul> </div> </div> </div> </div> </div> </div> </nav> <a href="/wiki/Main_Page" class="mw-logo"> <img class="mw-logo-icon" src="/static/images/icons/wikipedia.png" alt="" aria-hidden="true" height="50" width="50"> <span class="mw-logo-container skin-invert"> <img class="mw-logo-wordmark" alt="Wikipedia" src="/static/images/mobile/copyright/wikipedia-wordmark-en.svg" style="width: 7.5em; height: 1.125em;"> <img class="mw-logo-tagline" alt="The Free Encyclopedia" src="/static/images/mobile/copyright/wikipedia-tagline-en.svg" width="117" height="13" style="width: 7.3125em; height: 0.8125em;"> </span> </a> </div> <div class="vector-header-end"> <div id="p-search" role="search" class="vector-search-box-vue vector-search-box-collapses vector-search-box-show-thumbnail vector-search-box-auto-expand-width vector-search-box"> <a href="/wiki/Special:Search" class="cdx-button cdx-button--fake-button cdx-button--fake-button--enabled cdx-button--weight-quiet cdx-button--icon-only search-toggle" title="Search Wikipedia [f]" accesskey="f"><span class="vector-icon mw-ui-icon-search mw-ui-icon-wikimedia-search"></span> <span>Search</span> </a> <div class="vector-typeahead-search-container"> <div class="cdx-typeahead-search cdx-typeahead-search--show-thumbnail cdx-typeahead-search--auto-expand-width"> <form action="/w/index.php" id="searchform" class="cdx-search-input cdx-search-input--has-end-button"> <div id="simpleSearch" class="cdx-search-input__input-wrapper" data-search-loc="header-moved"> <div class="cdx-text-input cdx-text-input--has-start-icon"> <input class="cdx-text-input__input" type="search" name="search" placeholder="Search Wikipedia" aria-label="Search Wikipedia" autocapitalize="sentences" title="Search Wikipedia [f]" accesskey="f" id="searchInput" > <span class="cdx-text-input__icon cdx-text-input__start-icon"></span> </div> <input type="hidden" name="title" value="Special:Search"> </div> <button class="cdx-button cdx-search-input__end-button">Search</button> </form> </div> </div> </div> <nav class="vector-user-links vector-user-links-wide" aria-label="Personal tools"> <div class="vector-user-links-main"> <div id="p-vector-user-menu-preferences" class="vector-menu mw-portlet emptyPortlet" > <div class="vector-menu-content"> <ul class="vector-menu-content-list"> </ul> </div> </div> <div id="p-vector-user-menu-userpage" class="vector-menu mw-portlet emptyPortlet" > <div class="vector-menu-content"> <ul class="vector-menu-content-list"> </ul> </div> </div> <nav class="vector-appearance-landmark" aria-label="Appearance"> <div id="vector-appearance-dropdown" class="vector-dropdown " title="Change the appearance of the page's font size, width, and color" > <input type="checkbox" id="vector-appearance-dropdown-checkbox" role="button" aria-haspopup="true" data-event-name="ui.dropdown-vector-appearance-dropdown" class="vector-dropdown-checkbox " aria-label="Appearance" > <label id="vector-appearance-dropdown-label" for="vector-appearance-dropdown-checkbox" class="vector-dropdown-label cdx-button cdx-button--fake-button cdx-button--fake-button--enabled cdx-button--weight-quiet cdx-button--icon-only " aria-hidden="true" ><span class="vector-icon mw-ui-icon-appearance mw-ui-icon-wikimedia-appearance"></span> <span class="vector-dropdown-label-text">Appearance</span> </label> <div class="vector-dropdown-content"> <div id="vector-appearance-unpinned-container" class="vector-unpinned-container"> </div> </div> </div> </nav> <div id="p-vector-user-menu-notifications" class="vector-menu mw-portlet emptyPortlet" > <div class="vector-menu-content"> <ul class="vector-menu-content-list"> </ul> </div> </div> <div id="p-vector-user-menu-overflow" class="vector-menu mw-portlet" > <div class="vector-menu-content"> <ul class="vector-menu-content-list"> <li id="pt-sitesupport-2" class="user-links-collapsible-item mw-list-item user-links-collapsible-item"><a data-mw="interface" href="https://donate.wikimedia.org/?wmf_source=donate&wmf_medium=sidebar&wmf_campaign=en.wikipedia.org&uselang=en" class=""><span>Donate</span></a> </li> <li id="pt-createaccount-2" class="user-links-collapsible-item mw-list-item user-links-collapsible-item"><a data-mw="interface" href="/w/index.php?title=Special:CreateAccount&returnto=Deficit+spending" title="You are encouraged to create an account and log in; however, it is not mandatory" class=""><span>Create account</span></a> </li> <li id="pt-login-2" class="user-links-collapsible-item mw-list-item user-links-collapsible-item"><a data-mw="interface" href="/w/index.php?title=Special:UserLogin&returnto=Deficit+spending" title="You're encouraged to log in; however, it's not mandatory. [o]" accesskey="o" class=""><span>Log in</span></a> </li> </ul> </div> </div> </div> <div id="vector-user-links-dropdown" class="vector-dropdown vector-user-menu vector-button-flush-right vector-user-menu-logged-out" title="Log in and more options" > <input type="checkbox" id="vector-user-links-dropdown-checkbox" role="button" aria-haspopup="true" data-event-name="ui.dropdown-vector-user-links-dropdown" class="vector-dropdown-checkbox " aria-label="Personal tools" > <label id="vector-user-links-dropdown-label" for="vector-user-links-dropdown-checkbox" class="vector-dropdown-label cdx-button cdx-button--fake-button cdx-button--fake-button--enabled cdx-button--weight-quiet cdx-button--icon-only " aria-hidden="true" ><span class="vector-icon mw-ui-icon-ellipsis mw-ui-icon-wikimedia-ellipsis"></span> <span class="vector-dropdown-label-text">Personal tools</span> </label> <div class="vector-dropdown-content"> <div id="p-personal" class="vector-menu mw-portlet mw-portlet-personal user-links-collapsible-item" title="User menu" > <div class="vector-menu-content"> <ul class="vector-menu-content-list"> <li id="pt-sitesupport" class="user-links-collapsible-item mw-list-item"><a href="https://donate.wikimedia.org/?wmf_source=donate&wmf_medium=sidebar&wmf_campaign=en.wikipedia.org&uselang=en"><span>Donate</span></a></li><li id="pt-createaccount" class="user-links-collapsible-item mw-list-item"><a href="/w/index.php?title=Special:CreateAccount&returnto=Deficit+spending" title="You are encouraged to create an account and log in; however, it is not mandatory"><span class="vector-icon mw-ui-icon-userAdd mw-ui-icon-wikimedia-userAdd"></span> <span>Create account</span></a></li><li id="pt-login" class="user-links-collapsible-item mw-list-item"><a href="/w/index.php?title=Special:UserLogin&returnto=Deficit+spending" title="You're encouraged to log in; however, it's not mandatory. [o]" accesskey="o"><span class="vector-icon mw-ui-icon-logIn mw-ui-icon-wikimedia-logIn"></span> <span>Log in</span></a></li> </ul> </div> </div> <div id="p-user-menu-anon-editor" class="vector-menu mw-portlet mw-portlet-user-menu-anon-editor" > <div class="vector-menu-heading"> Pages for logged out editors <a href="/wiki/Help:Introduction" aria-label="Learn more about editing"><span>learn more</span></a> </div> <div class="vector-menu-content"> <ul class="vector-menu-content-list"> <li id="pt-anoncontribs" class="mw-list-item"><a href="/wiki/Special:MyContributions" title="A list of edits made from this IP address [y]" accesskey="y"><span>Contributions</span></a></li><li id="pt-anontalk" class="mw-list-item"><a href="/wiki/Special:MyTalk" title="Discussion about edits from this IP address [n]" accesskey="n"><span>Talk</span></a></li> </ul> </div> </div> </div> </div> </nav> </div> </header> </div> <div class="mw-page-container"> <div class="mw-page-container-inner"> <div class="vector-sitenotice-container"> <div id="siteNotice"></div> </div> <div class="vector-column-start"> <div class="vector-main-menu-container"> <div id="mw-navigation"> <nav id="mw-panel" class="vector-main-menu-landmark" aria-label="Site"> <div id="vector-main-menu-pinned-container" class="vector-pinned-container"> </div> </nav> </div> </div> <div class="vector-sticky-pinned-container"> <nav id="mw-panel-toc" aria-label="Contents" data-event-name="ui.sidebar-toc" class="mw-table-of-contents-container vector-toc-landmark"> <div id="vector-toc-pinned-container" class="vector-pinned-container"> <div id="vector-toc" class="vector-toc vector-pinnable-element"> <div class="vector-pinnable-header vector-toc-pinnable-header vector-pinnable-header-pinned" data-feature-name="toc-pinned" data-pinnable-element-id="vector-toc" > <h2 class="vector-pinnable-header-label">Contents</h2> <button class="vector-pinnable-header-toggle-button vector-pinnable-header-pin-button" data-event-name="pinnable-header.vector-toc.pin">move to sidebar</button> <button class="vector-pinnable-header-toggle-button vector-pinnable-header-unpin-button" data-event-name="pinnable-header.vector-toc.unpin">hide</button> </div> <ul class="vector-toc-contents" id="mw-panel-toc-list"> <li id="toc-mw-content-text" class="vector-toc-list-item vector-toc-level-1"> <a href="#" class="vector-toc-link"> <div class="vector-toc-text">(Top)</div> </a> </li> <li id="toc-Controversy" class="vector-toc-list-item vector-toc-level-1 vector-toc-list-item-expanded"> <a class="vector-toc-link" href="#Controversy"> <div class="vector-toc-text"> <span class="vector-toc-numb">1</span> <span>Controversy</span> </div> </a> <button aria-controls="toc-Controversy-sublist" class="cdx-button cdx-button--weight-quiet cdx-button--icon-only vector-toc-toggle"> <span class="vector-icon mw-ui-icon-wikimedia-expand"></span> <span>Toggle Controversy subsection</span> </button> <ul id="toc-Controversy-sublist" class="vector-toc-list"> <li id="toc-Fiscal_conservatism" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#Fiscal_conservatism"> <div class="vector-toc-text"> <span class="vector-toc-numb">1.1</span> <span>Fiscal conservatism</span> </div> </a> <ul id="toc-Fiscal_conservatism-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Post-Keynesian_economics" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#Post-Keynesian_economics"> <div class="vector-toc-text"> <span class="vector-toc-numb">1.2</span> <span>Post-Keynesian economics</span> </div> </a> <ul id="toc-Post-Keynesian_economics-sublist" class="vector-toc-list"> </ul> </li> </ul> </li> <li id="toc-Government_deficits" class="vector-toc-list-item vector-toc-level-1 vector-toc-list-item-expanded"> <a class="vector-toc-link" href="#Government_deficits"> <div class="vector-toc-text"> <span class="vector-toc-numb">2</span> <span>Government deficits</span> </div> </a> <button aria-controls="toc-Government_deficits-sublist" class="cdx-button cdx-button--weight-quiet cdx-button--icon-only vector-toc-toggle"> <span class="vector-icon mw-ui-icon-wikimedia-expand"></span> <span>Toggle Government deficits subsection</span> </button> <ul id="toc-Government_deficits-sublist" class="vector-toc-list"> <li id="toc-Keynesian_effect" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#Keynesian_effect"> <div class="vector-toc-text"> <span class="vector-toc-numb">2.1</span> <span>Keynesian effect</span> </div> </a> <ul id="toc-Keynesian_effect-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Loanable_funds" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#Loanable_funds"> <div class="vector-toc-text"> <span class="vector-toc-numb">2.2</span> <span>Loanable funds</span> </div> </a> <ul id="toc-Loanable_funds-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Crowding_out" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#Crowding_out"> <div class="vector-toc-text"> <span class="vector-toc-numb">2.3</span> <span>Crowding out</span> </div> </a> <ul id="toc-Crowding_out-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Unintentional_deficits" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#Unintentional_deficits"> <div class="vector-toc-text"> <span class="vector-toc-numb">2.4</span> <span>Unintentional deficits</span> </div> </a> <ul id="toc-Unintentional_deficits-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Automatic_vs._active_deficit_policies" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#Automatic_vs._active_deficit_policies"> <div class="vector-toc-text"> <span class="vector-toc-numb">2.5</span> <span>Automatic vs. active deficit policies</span> </div> </a> <ul id="toc-Automatic_vs._active_deficit_policies-sublist" class="vector-toc-list"> </ul> </li> </ul> </li> <li id="toc-Structural_and_cyclical_deficit" class="vector-toc-list-item vector-toc-level-1 vector-toc-list-item-expanded"> <a class="vector-toc-link" href="#Structural_and_cyclical_deficit"> <div class="vector-toc-text"> <span class="vector-toc-numb">3</span> <span>Structural and cyclical deficit</span> </div> </a> <button aria-controls="toc-Structural_and_cyclical_deficit-sublist" class="cdx-button cdx-button--weight-quiet cdx-button--icon-only vector-toc-toggle"> <span class="vector-icon mw-ui-icon-wikimedia-expand"></span> <span>Toggle Structural and cyclical deficit subsection</span> </button> <ul id="toc-Structural_and_cyclical_deficit-sublist" class="vector-toc-list"> <li id="toc-Cyclical_deficit" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#Cyclical_deficit"> <div class="vector-toc-text"> <span class="vector-toc-numb">3.1</span> <span>Cyclical deficit</span> </div> </a> <ul id="toc-Cyclical_deficit-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Structural_deficit" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#Structural_deficit"> <div class="vector-toc-text"> <span class="vector-toc-numb">3.2</span> <span>Structural deficit</span> </div> </a> <ul id="toc-Structural_deficit-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Structural_and_cyclical_surplus" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#Structural_and_cyclical_surplus"> <div class="vector-toc-text"> <span class="vector-toc-numb">3.3</span> <span>Structural and cyclical surplus</span> </div> </a> <ul id="toc-Structural_and_cyclical_surplus-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Interplay_of_structural_and_cyclical_components" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#Interplay_of_structural_and_cyclical_components"> <div class="vector-toc-text"> <span class="vector-toc-numb">3.4</span> <span>Interplay of structural and cyclical components</span> </div> </a> <ul id="toc-Interplay_of_structural_and_cyclical_components-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Criticism" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#Criticism"> <div class="vector-toc-text"> <span class="vector-toc-numb">3.5</span> <span>Criticism</span> </div> </a> <ul id="toc-Criticism-sublist" class="vector-toc-list"> </ul> </li> </ul> </li> <li id="toc-See_also" class="vector-toc-list-item vector-toc-level-1 vector-toc-list-item-expanded"> <a class="vector-toc-link" href="#See_also"> <div class="vector-toc-text"> <span class="vector-toc-numb">4</span> <span>See also</span> </div> </a> <ul id="toc-See_also-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-References" class="vector-toc-list-item vector-toc-level-1 vector-toc-list-item-expanded"> <a class="vector-toc-link" href="#References"> <div class="vector-toc-text"> <span class="vector-toc-numb">5</span> <span>References</span> </div> </a> <ul id="toc-References-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Bibliography" class="vector-toc-list-item vector-toc-level-1 vector-toc-list-item-expanded"> <a class="vector-toc-link" href="#Bibliography"> <div class="vector-toc-text"> <span class="vector-toc-numb">6</span> <span>Bibliography</span> </div> </a> <ul id="toc-Bibliography-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Further_reading" class="vector-toc-list-item vector-toc-level-1 vector-toc-list-item-expanded"> <a class="vector-toc-link" href="#Further_reading"> <div class="vector-toc-text"> <span class="vector-toc-numb">7</span> <span>Further reading</span> </div> </a> <ul id="toc-Further_reading-sublist" class="vector-toc-list"> </ul> </li> </ul> </div> </div> </nav> </div> </div> <div class="mw-content-container"> <main id="content" class="mw-body"> <header class="mw-body-header vector-page-titlebar"> <nav aria-label="Contents" class="vector-toc-landmark"> <div id="vector-page-titlebar-toc" class="vector-dropdown vector-page-titlebar-toc vector-button-flush-left" title="Table of Contents" > <input type="checkbox" id="vector-page-titlebar-toc-checkbox" role="button" aria-haspopup="true" data-event-name="ui.dropdown-vector-page-titlebar-toc" class="vector-dropdown-checkbox " aria-label="Toggle the table of contents" > <label id="vector-page-titlebar-toc-label" for="vector-page-titlebar-toc-checkbox" class="vector-dropdown-label cdx-button cdx-button--fake-button cdx-button--fake-button--enabled cdx-button--weight-quiet cdx-button--icon-only " aria-hidden="true" ><span class="vector-icon mw-ui-icon-listBullet mw-ui-icon-wikimedia-listBullet"></span> <span class="vector-dropdown-label-text">Toggle the table of contents</span> </label> <div class="vector-dropdown-content"> <div id="vector-page-titlebar-toc-unpinned-container" class="vector-unpinned-container"> </div> </div> </div> </nav> <h1 id="firstHeading" class="firstHeading mw-first-heading"><span class="mw-page-title-main">Deficit spending</span></h1> <div id="p-lang-btn" class="vector-dropdown mw-portlet mw-portlet-lang" > <input type="checkbox" id="p-lang-btn-checkbox" role="button" aria-haspopup="true" data-event-name="ui.dropdown-p-lang-btn" class="vector-dropdown-checkbox mw-interlanguage-selector" aria-label="Go to an article in another language. Available in 17 languages" > <label id="p-lang-btn-label" for="p-lang-btn-checkbox" class="vector-dropdown-label cdx-button cdx-button--fake-button cdx-button--fake-button--enabled cdx-button--weight-quiet cdx-button--action-progressive mw-portlet-lang-heading-17" aria-hidden="true" ><span class="vector-icon mw-ui-icon-language-progressive mw-ui-icon-wikimedia-language-progressive"></span> <span class="vector-dropdown-label-text">17 languages</span> </label> <div class="vector-dropdown-content"> <div class="vector-menu-content"> <ul class="vector-menu-content-list"> <li class="interlanguage-link interwiki-ar mw-list-item"><a href="https://ar.wikipedia.org/wiki/%D8%B9%D8%AC%D8%B2_%D9%81%D9%8A_%D8%A7%D9%84%D9%85%D9%8A%D8%B2%D8%A7%D9%86%D9%8A%D8%A9" title="عجز في الميزانية – Arabic" lang="ar" hreflang="ar" data-title="عجز في الميزانية" data-language-autonym="العربية" data-language-local-name="Arabic" class="interlanguage-link-target"><span>العربية</span></a></li><li class="interlanguage-link interwiki-de mw-list-item"><a href="https://de.wikipedia.org/wiki/Deficit_spending" title="Deficit spending – German" lang="de" hreflang="de" data-title="Deficit spending" data-language-autonym="Deutsch" data-language-local-name="German" class="interlanguage-link-target"><span>Deutsch</span></a></li><li class="interlanguage-link interwiki-fa mw-list-item"><a href="https://fa.wikipedia.org/wiki/%DA%A9%D8%B3%D8%B1_%D8%A8%D9%88%D8%AF%D8%AC%D9%87" title="کسر بودجه – Persian" lang="fa" hreflang="fa" data-title="کسر بودجه" data-language-autonym="فارسی" data-language-local-name="Persian" class="interlanguage-link-target"><span>فارسی</span></a></li><li class="interlanguage-link interwiki-fr mw-list-item"><a href="https://fr.wikipedia.org/wiki/D%C3%A9ficit_budg%C3%A9taire_et_d%C3%A9ficit_public" title="Déficit budgétaire et déficit public – French" lang="fr" hreflang="fr" data-title="Déficit budgétaire et déficit public" data-language-autonym="Français" data-language-local-name="French" class="interlanguage-link-target"><span>Français</span></a></li><li class="interlanguage-link interwiki-hy mw-list-item"><a href="https://hy.wikipedia.org/wiki/%D4%B2%D5%B5%D5%B8%D6%82%D5%BB%D5%A5%D5%AB_%D5%A4%D5%A5%D6%86%D5%AB%D6%81%D5%AB%D5%BF" title="Բյուջեի դեֆիցիտ – Armenian" lang="hy" hreflang="hy" data-title="Բյուջեի դեֆիցիտ" data-language-autonym="Հայերեն" data-language-local-name="Armenian" class="interlanguage-link-target"><span>Հայերեն</span></a></li><li class="interlanguage-link interwiki-hi mw-list-item"><a href="https://hi.wikipedia.org/wiki/%E0%A4%98%E0%A4%BE%E0%A4%9F%E0%A5%87_%E0%A4%95%E0%A5%80_%E0%A4%B5%E0%A4%BF%E0%A4%A4%E0%A5%8D%E0%A4%A4_%E0%A4%B5%E0%A5%8D%E0%A4%AF%E0%A4%B5%E0%A4%B8%E0%A5%8D%E0%A4%A5%E0%A4%BE" title="घाटे की वित्त व्यवस्था – Hindi" lang="hi" hreflang="hi" data-title="घाटे की वित्त व्यवस्था" data-language-autonym="हिन्दी" data-language-local-name="Hindi" class="interlanguage-link-target"><span>हिन्दी</span></a></li><li class="interlanguage-link interwiki-hr mw-list-item"><a href="https://hr.wikipedia.org/wiki/Deficitarno_financiranje" title="Deficitarno financiranje – Croatian" lang="hr" hreflang="hr" data-title="Deficitarno financiranje" data-language-autonym="Hrvatski" data-language-local-name="Croatian" class="interlanguage-link-target"><span>Hrvatski</span></a></li><li class="interlanguage-link interwiki-id badge-Q70893996 mw-list-item" title=""><a href="https://id.wikipedia.org/wiki/Pengeluaran_defisit" title="Pengeluaran defisit – Indonesian" lang="id" hreflang="id" data-title="Pengeluaran defisit" data-language-autonym="Bahasa Indonesia" data-language-local-name="Indonesian" class="interlanguage-link-target"><span>Bahasa Indonesia</span></a></li><li class="interlanguage-link interwiki-it mw-list-item"><a href="https://it.wikipedia.org/wiki/Deficit_pubblico" title="Deficit pubblico – Italian" lang="it" hreflang="it" data-title="Deficit pubblico" data-language-autonym="Italiano" data-language-local-name="Italian" class="interlanguage-link-target"><span>Italiano</span></a></li><li class="interlanguage-link interwiki-kn mw-list-item"><a href="https://kn.wikipedia.org/wiki/%E0%B2%95%E0%B3%8A%E0%B2%B0%E0%B2%A4%E0%B3%86_%E0%B2%A7%E0%B2%A8%E0%B2%B5%E0%B2%BF%E0%B2%A8%E0%B2%BF%E0%B2%AF%E0%B3%8B%E0%B2%97" title="ಕೊರತೆ ಧನವಿನಿಯೋಗ – Kannada" lang="kn" hreflang="kn" data-title="ಕೊರತೆ ಧನವಿನಿಯೋಗ" data-language-autonym="ಕನ್ನಡ" data-language-local-name="Kannada" class="interlanguage-link-target"><span>ಕನ್ನಡ</span></a></li><li class="interlanguage-link interwiki-ja mw-list-item"><a href="https://ja.wikipedia.org/wiki/%E3%82%B1%E3%82%A4%E3%83%B3%E3%82%BA%E6%94%BF%E7%AD%96" title="ケインズ政策 – Japanese" lang="ja" hreflang="ja" data-title="ケインズ政策" data-language-autonym="日本語" data-language-local-name="Japanese" class="interlanguage-link-target"><span>日本語</span></a></li><li class="interlanguage-link interwiki-pa mw-list-item"><a href="https://pa.wikipedia.org/wiki/%E0%A8%98%E0%A8%BE%E0%A8%9F%E0%A8%BE_%E0%A8%96%E0%A8%B0%E0%A8%9A" title="ਘਾਟਾ ਖਰਚ – Punjabi" lang="pa" hreflang="pa" data-title="ਘਾਟਾ ਖਰਚ" data-language-autonym="ਪੰਜਾਬੀ" data-language-local-name="Punjabi" class="interlanguage-link-target"><span>ਪੰਜਾਬੀ</span></a></li><li class="interlanguage-link interwiki-pt mw-list-item"><a href="https://pt.wikipedia.org/wiki/Deficit_p%C3%BAblico" title="Deficit público – Portuguese" lang="pt" hreflang="pt" data-title="Deficit público" data-language-autonym="Português" data-language-local-name="Portuguese" class="interlanguage-link-target"><span>Português</span></a></li><li class="interlanguage-link interwiki-ro mw-list-item"><a href="https://ro.wikipedia.org/wiki/Deficit_bugetar" title="Deficit bugetar – Romanian" lang="ro" hreflang="ro" data-title="Deficit bugetar" data-language-autonym="Română" data-language-local-name="Romanian" class="interlanguage-link-target"><span>Română</span></a></li><li class="interlanguage-link interwiki-simple mw-list-item"><a href="https://simple.wikipedia.org/wiki/Deficit_spending" title="Deficit spending – Simple English" lang="en-simple" hreflang="en-simple" data-title="Deficit spending" data-language-autonym="Simple English" data-language-local-name="Simple English" class="interlanguage-link-target"><span>Simple English</span></a></li><li class="interlanguage-link interwiki-uk mw-list-item"><a href="https://uk.wikipedia.org/wiki/%D0%91%D1%8E%D0%B4%D0%B6%D0%B5%D1%82%D0%BD%D0%B8%D0%B9_%D0%B4%D0%B5%D1%84%D1%96%D1%86%D0%B8%D1%82" title="Бюджетний дефіцит – Ukrainian" lang="uk" hreflang="uk" data-title="Бюджетний дефіцит" data-language-autonym="Українська" data-language-local-name="Ukrainian" class="interlanguage-link-target"><span>Українська</span></a></li><li class="interlanguage-link interwiki-vi mw-list-item"><a href="https://vi.wikipedia.org/wiki/K%C3%ADch_c%E1%BA%A7u" title="Kích cầu – Vietnamese" lang="vi" hreflang="vi" data-title="Kích cầu" data-language-autonym="Tiếng Việt" data-language-local-name="Vietnamese" class="interlanguage-link-target"><span>Tiếng Việt</span></a></li> </ul> <div class="after-portlet after-portlet-lang"><span class="wb-langlinks-edit wb-langlinks-link"><a href="https://www.wikidata.org/wiki/Special:EntityPage/Q17010135#sitelinks-wikipedia" title="Edit interlanguage links" class="wbc-editpage">Edit links</a></span></div> </div> </div> </div> </header> <div class="vector-page-toolbar"> <div class="vector-page-toolbar-container"> <div id="left-navigation"> <nav aria-label="Namespaces"> <div id="p-associated-pages" class="vector-menu vector-menu-tabs mw-portlet mw-portlet-associated-pages" > <div class="vector-menu-content"> <ul class="vector-menu-content-list"> <li id="ca-nstab-main" class="selected vector-tab-noicon mw-list-item"><a href="/wiki/Deficit_spending" title="View the content page [c]" accesskey="c"><span>Article</span></a></li><li id="ca-talk" class="vector-tab-noicon mw-list-item"><a href="/wiki/Talk:Deficit_spending" rel="discussion" title="Discuss improvements to the content page [t]" accesskey="t"><span>Talk</span></a></li> </ul> </div> </div> <div id="vector-variants-dropdown" class="vector-dropdown emptyPortlet" > <input type="checkbox" id="vector-variants-dropdown-checkbox" role="button" aria-haspopup="true" data-event-name="ui.dropdown-vector-variants-dropdown" class="vector-dropdown-checkbox " aria-label="Change language variant" > <label id="vector-variants-dropdown-label" for="vector-variants-dropdown-checkbox" class="vector-dropdown-label cdx-button cdx-button--fake-button cdx-button--fake-button--enabled cdx-button--weight-quiet" aria-hidden="true" ><span class="vector-dropdown-label-text">English</span> </label> <div class="vector-dropdown-content"> <div id="p-variants" class="vector-menu mw-portlet mw-portlet-variants emptyPortlet" > <div class="vector-menu-content"> <ul class="vector-menu-content-list"> </ul> </div> </div> </div> </div> </nav> </div> <div id="right-navigation" class="vector-collapsible"> <nav aria-label="Views"> <div id="p-views" class="vector-menu vector-menu-tabs mw-portlet mw-portlet-views" > <div class="vector-menu-content"> <ul class="vector-menu-content-list"> <li id="ca-view" class="selected vector-tab-noicon mw-list-item"><a href="/wiki/Deficit_spending"><span>Read</span></a></li><li id="ca-edit" class="vector-tab-noicon mw-list-item"><a href="/w/index.php?title=Deficit_spending&action=edit" title="Edit this page [e]" accesskey="e"><span>Edit</span></a></li><li id="ca-history" class="vector-tab-noicon mw-list-item"><a href="/w/index.php?title=Deficit_spending&action=history" title="Past revisions of this page [h]" accesskey="h"><span>View history</span></a></li> </ul> </div> </div> </nav> <nav class="vector-page-tools-landmark" aria-label="Page tools"> <div id="vector-page-tools-dropdown" class="vector-dropdown vector-page-tools-dropdown" > <input type="checkbox" id="vector-page-tools-dropdown-checkbox" role="button" aria-haspopup="true" data-event-name="ui.dropdown-vector-page-tools-dropdown" class="vector-dropdown-checkbox " aria-label="Tools" > <label id="vector-page-tools-dropdown-label" for="vector-page-tools-dropdown-checkbox" class="vector-dropdown-label cdx-button cdx-button--fake-button cdx-button--fake-button--enabled cdx-button--weight-quiet" aria-hidden="true" ><span class="vector-dropdown-label-text">Tools</span> </label> <div class="vector-dropdown-content"> <div id="vector-page-tools-unpinned-container" class="vector-unpinned-container"> <div id="vector-page-tools" class="vector-page-tools vector-pinnable-element"> <div class="vector-pinnable-header vector-page-tools-pinnable-header vector-pinnable-header-unpinned" data-feature-name="page-tools-pinned" data-pinnable-element-id="vector-page-tools" data-pinned-container-id="vector-page-tools-pinned-container" data-unpinned-container-id="vector-page-tools-unpinned-container" > <div class="vector-pinnable-header-label">Tools</div> <button class="vector-pinnable-header-toggle-button vector-pinnable-header-pin-button" data-event-name="pinnable-header.vector-page-tools.pin">move to sidebar</button> <button class="vector-pinnable-header-toggle-button vector-pinnable-header-unpin-button" data-event-name="pinnable-header.vector-page-tools.unpin">hide</button> </div> <div id="p-cactions" class="vector-menu mw-portlet mw-portlet-cactions emptyPortlet vector-has-collapsible-items" title="More options" > <div class="vector-menu-heading"> Actions </div> <div class="vector-menu-content"> <ul class="vector-menu-content-list"> <li id="ca-more-view" class="selected vector-more-collapsible-item mw-list-item"><a href="/wiki/Deficit_spending"><span>Read</span></a></li><li id="ca-more-edit" class="vector-more-collapsible-item mw-list-item"><a href="/w/index.php?title=Deficit_spending&action=edit" title="Edit this page [e]" accesskey="e"><span>Edit</span></a></li><li id="ca-more-history" class="vector-more-collapsible-item mw-list-item"><a href="/w/index.php?title=Deficit_spending&action=history"><span>View history</span></a></li> </ul> </div> </div> <div id="p-tb" class="vector-menu mw-portlet mw-portlet-tb" > <div class="vector-menu-heading"> General </div> <div class="vector-menu-content"> <ul class="vector-menu-content-list"> <li id="t-whatlinkshere" class="mw-list-item"><a href="/wiki/Special:WhatLinksHere/Deficit_spending" title="List of all English Wikipedia pages containing links to this page [j]" accesskey="j"><span>What links here</span></a></li><li id="t-recentchangeslinked" class="mw-list-item"><a href="/wiki/Special:RecentChangesLinked/Deficit_spending" rel="nofollow" title="Recent changes in pages linked from this page [k]" accesskey="k"><span>Related changes</span></a></li><li id="t-upload" class="mw-list-item"><a href="//en.wikipedia.org/wiki/Wikipedia:File_Upload_Wizard" title="Upload files [u]" accesskey="u"><span>Upload file</span></a></li><li id="t-permalink" class="mw-list-item"><a href="/w/index.php?title=Deficit_spending&oldid=1275567036" title="Permanent link to this revision of this page"><span>Permanent link</span></a></li><li id="t-info" class="mw-list-item"><a href="/w/index.php?title=Deficit_spending&action=info" title="More information about this page"><span>Page information</span></a></li><li id="t-cite" class="mw-list-item"><a href="/w/index.php?title=Special:CiteThisPage&page=Deficit_spending&id=1275567036&wpFormIdentifier=titleform" title="Information on how to cite this page"><span>Cite this page</span></a></li><li id="t-urlshortener" class="mw-list-item"><a href="/w/index.php?title=Special:UrlShortener&url=https%3A%2F%2Fen.wikipedia.org%2Fwiki%2FDeficit_spending"><span>Get shortened URL</span></a></li><li id="t-urlshortener-qrcode" class="mw-list-item"><a href="/w/index.php?title=Special:QrCode&url=https%3A%2F%2Fen.wikipedia.org%2Fwiki%2FDeficit_spending"><span>Download QR code</span></a></li> </ul> </div> </div> <div id="p-coll-print_export" class="vector-menu mw-portlet mw-portlet-coll-print_export" > <div class="vector-menu-heading"> Print/export </div> <div class="vector-menu-content"> <ul class="vector-menu-content-list"> <li id="coll-download-as-rl" class="mw-list-item"><a href="/w/index.php?title=Special:DownloadAsPdf&page=Deficit_spending&action=show-download-screen" title="Download this page as a PDF file"><span>Download as PDF</span></a></li><li id="t-print" class="mw-list-item"><a href="/w/index.php?title=Deficit_spending&printable=yes" title="Printable version of this page [p]" accesskey="p"><span>Printable version</span></a></li> </ul> </div> </div> <div id="p-wikibase-otherprojects" class="vector-menu mw-portlet mw-portlet-wikibase-otherprojects" > <div class="vector-menu-heading"> In other projects </div> <div class="vector-menu-content"> <ul class="vector-menu-content-list"> <li class="wb-otherproject-link wb-otherproject-commons mw-list-item"><a href="https://commons.wikimedia.org/wiki/Category:Public_deficit" hreflang="en"><span>Wikimedia Commons</span></a></li><li id="t-wikibase" class="wb-otherproject-link wb-otherproject-wikibase-dataitem mw-list-item"><a href="https://www.wikidata.org/wiki/Special:EntityPage/Q17010135" title="Structured data on this page hosted by Wikidata [g]" accesskey="g"><span>Wikidata item</span></a></li> </ul> </div> </div> </div> </div> </div> </div> </nav> </div> </div> </div> <div class="vector-column-end"> <div class="vector-sticky-pinned-container"> <nav class="vector-page-tools-landmark" aria-label="Page tools"> <div id="vector-page-tools-pinned-container" class="vector-pinned-container"> </div> </nav> <nav class="vector-appearance-landmark" aria-label="Appearance"> <div id="vector-appearance-pinned-container" class="vector-pinned-container"> <div id="vector-appearance" class="vector-appearance vector-pinnable-element"> <div class="vector-pinnable-header vector-appearance-pinnable-header vector-pinnable-header-pinned" data-feature-name="appearance-pinned" data-pinnable-element-id="vector-appearance" data-pinned-container-id="vector-appearance-pinned-container" data-unpinned-container-id="vector-appearance-unpinned-container" > <div class="vector-pinnable-header-label">Appearance</div> <button class="vector-pinnable-header-toggle-button vector-pinnable-header-pin-button" data-event-name="pinnable-header.vector-appearance.pin">move to sidebar</button> <button class="vector-pinnable-header-toggle-button vector-pinnable-header-unpin-button" data-event-name="pinnable-header.vector-appearance.unpin">hide</button> </div> </div> </div> </nav> </div> </div> <div id="bodyContent" class="vector-body" aria-labelledby="firstHeading" data-mw-ve-target-container> <div class="vector-body-before-content"> <div class="mw-indicators"> </div> <div id="siteSub" class="noprint">From Wikipedia, the free encyclopedia</div> </div> <div id="contentSub"><div id="mw-content-subtitle"><span class="mw-redirectedfrom">(Redirected from <a href="/w/index.php?title=Budget_deficit&redirect=no" class="mw-redirect" title="Budget deficit">Budget deficit</a>)</span></div></div> <div id="mw-content-text" class="mw-body-content"><div class="mw-content-ltr mw-parser-output" lang="en" dir="ltr"><div class="shortdescription nomobile noexcerpt noprint searchaux" style="display:none">Spending in excess of revenue</div> <style data-mw-deduplicate="TemplateStyles:r1251242444">.mw-parser-output .ambox{border:1px solid #a2a9b1;border-left:10px solid #36c;background-color:#fbfbfb;box-sizing:border-box}.mw-parser-output .ambox+link+.ambox,.mw-parser-output .ambox+link+style+.ambox,.mw-parser-output .ambox+link+link+.ambox,.mw-parser-output .ambox+.mw-empty-elt+link+.ambox,.mw-parser-output .ambox+.mw-empty-elt+link+style+.ambox,.mw-parser-output .ambox+.mw-empty-elt+link+link+.ambox{margin-top:-1px}html body.mediawiki .mw-parser-output .ambox.mbox-small-left{margin:4px 1em 4px 0;overflow:hidden;width:238px;border-collapse:collapse;font-size:88%;line-height:1.25em}.mw-parser-output .ambox-speedy{border-left:10px solid #b32424;background-color:#fee7e6}.mw-parser-output .ambox-delete{border-left:10px solid #b32424}.mw-parser-output .ambox-content{border-left:10px solid #f28500}.mw-parser-output .ambox-style{border-left:10px solid #fc3}.mw-parser-output .ambox-move{border-left:10px solid #9932cc}.mw-parser-output .ambox-protection{border-left:10px solid #a2a9b1}.mw-parser-output .ambox .mbox-text{border:none;padding:0.25em 0.5em;width:100%}.mw-parser-output .ambox .mbox-image{border:none;padding:2px 0 2px 0.5em;text-align:center}.mw-parser-output .ambox .mbox-imageright{border:none;padding:2px 0.5em 2px 0;text-align:center}.mw-parser-output .ambox .mbox-empty-cell{border:none;padding:0;width:1px}.mw-parser-output .ambox .mbox-image-div{width:52px}@media(min-width:720px){.mw-parser-output .ambox{margin:0 10%}}@media print{body.ns-0 .mw-parser-output .ambox{display:none!important}}</style><table class="box-More_citations_needed plainlinks metadata ambox ambox-content ambox-Refimprove" role="presentation"><tbody><tr><td class="mbox-image"><div class="mbox-image-div"><span typeof="mw:File"><a href="/wiki/File:Question_book-new.svg" class="mw-file-description"><img alt="" src="//upload.wikimedia.org/wikipedia/en/thumb/9/99/Question_book-new.svg/50px-Question_book-new.svg.png" decoding="async" width="50" height="39" class="mw-file-element" srcset="//upload.wikimedia.org/wikipedia/en/thumb/9/99/Question_book-new.svg/75px-Question_book-new.svg.png 1.5x, //upload.wikimedia.org/wikipedia/en/thumb/9/99/Question_book-new.svg/100px-Question_book-new.svg.png 2x" data-file-width="512" data-file-height="399" /></a></span></div></td><td class="mbox-text"><div class="mbox-text-span">This article <b>needs additional citations for <a href="/wiki/Wikipedia:Verifiability" title="Wikipedia:Verifiability">verification</a></b>.<span class="hide-when-compact"> Please help <a href="/wiki/Special:EditPage/Deficit_spending" title="Special:EditPage/Deficit spending">improve this article</a> by <a href="/wiki/Help:Referencing_for_beginners" title="Help:Referencing for beginners">adding citations to reliable sources</a>. Unsourced material may be challenged and removed.<br /><small><span class="plainlinks"><i>Find sources:</i> <a rel="nofollow" class="external text" href="https://www.google.com/search?as_eq=wikipedia&q=%22Deficit+spending%22">"Deficit spending"</a> – <a rel="nofollow" class="external text" href="https://www.google.com/search?tbm=nws&q=%22Deficit+spending%22+-wikipedia&tbs=ar:1">news</a> <b>·</b> <a rel="nofollow" class="external text" href="https://www.google.com/search?&q=%22Deficit+spending%22&tbs=bkt:s&tbm=bks">newspapers</a> <b>·</b> <a rel="nofollow" class="external text" href="https://www.google.com/search?tbs=bks:1&q=%22Deficit+spending%22+-wikipedia">books</a> <b>·</b> <a rel="nofollow" class="external text" href="https://scholar.google.com/scholar?q=%22Deficit+spending%22">scholar</a> <b>·</b> <a rel="nofollow" class="external text" href="https://www.jstor.org/action/doBasicSearch?Query=%22Deficit+spending%22&acc=on&wc=on">JSTOR</a></span></small></span> <span class="date-container"><i>(<span class="date">June 2023</span>)</i></span><span class="hide-when-compact"><i> (<small><a href="/wiki/Help:Maintenance_template_removal" title="Help:Maintenance template removal">Learn how and when to remove this message</a></small>)</i></span></div></td></tr></tbody></table> <p class="mw-empty-elt"> </p> <style data-mw-deduplicate="TemplateStyles:r1129693374">.mw-parser-output .hlist dl,.mw-parser-output .hlist ol,.mw-parser-output .hlist ul{margin:0;padding:0}.mw-parser-output .hlist dd,.mw-parser-output .hlist dt,.mw-parser-output .hlist li{margin:0;display:inline}.mw-parser-output .hlist.inline,.mw-parser-output .hlist.inline dl,.mw-parser-output .hlist.inline ol,.mw-parser-output .hlist.inline ul,.mw-parser-output .hlist dl dl,.mw-parser-output .hlist dl ol,.mw-parser-output .hlist dl ul,.mw-parser-output .hlist ol dl,.mw-parser-output .hlist ol ol,.mw-parser-output .hlist ol ul,.mw-parser-output .hlist ul dl,.mw-parser-output .hlist ul ol,.mw-parser-output .hlist ul ul{display:inline}.mw-parser-output .hlist .mw-empty-li{display:none}.mw-parser-output .hlist dt::after{content:": "}.mw-parser-output .hlist dd::after,.mw-parser-output .hlist li::after{content:" · ";font-weight:bold}.mw-parser-output .hlist dd:last-child::after,.mw-parser-output .hlist dt:last-child::after,.mw-parser-output .hlist li:last-child::after{content:none}.mw-parser-output .hlist dd dd:first-child::before,.mw-parser-output .hlist dd dt:first-child::before,.mw-parser-output .hlist dd li:first-child::before,.mw-parser-output .hlist dt dd:first-child::before,.mw-parser-output .hlist dt dt:first-child::before,.mw-parser-output .hlist dt li:first-child::before,.mw-parser-output .hlist li dd:first-child::before,.mw-parser-output .hlist li dt:first-child::before,.mw-parser-output .hlist li li:first-child::before{content:" (";font-weight:normal}.mw-parser-output .hlist dd dd:last-child::after,.mw-parser-output .hlist dd dt:last-child::after,.mw-parser-output .hlist dd li:last-child::after,.mw-parser-output .hlist dt dd:last-child::after,.mw-parser-output .hlist dt dt:last-child::after,.mw-parser-output .hlist dt li:last-child::after,.mw-parser-output .hlist li dd:last-child::after,.mw-parser-output .hlist li dt:last-child::after,.mw-parser-output .hlist li li:last-child::after{content:")";font-weight:normal}.mw-parser-output .hlist ol{counter-reset:listitem}.mw-parser-output .hlist ol>li{counter-increment:listitem}.mw-parser-output .hlist ol>li::before{content:" "counter(listitem)"\a0 "}.mw-parser-output .hlist dd ol>li:first-child::before,.mw-parser-output .hlist dt ol>li:first-child::before,.mw-parser-output .hlist li ol>li:first-child::before{content:" ("counter(listitem)"\a0 "}</style><style data-mw-deduplicate="TemplateStyles:r1246091330">.mw-parser-output .sidebar{width:22em;float:right;clear:right;margin:0.5em 0 1em 1em;background:var(--background-color-neutral-subtle,#f8f9fa);border:1px solid var(--border-color-base,#a2a9b1);padding:0.2em;text-align:center;line-height:1.4em;font-size:88%;border-collapse:collapse;display:table}body.skin-minerva .mw-parser-output .sidebar{display:table!important;float:right!important;margin:0.5em 0 1em 1em!important}.mw-parser-output .sidebar-subgroup{width:100%;margin:0;border-spacing:0}.mw-parser-output .sidebar-left{float:left;clear:left;margin:0.5em 1em 1em 0}.mw-parser-output .sidebar-none{float:none;clear:both;margin:0.5em 1em 1em 0}.mw-parser-output .sidebar-outer-title{padding:0 0.4em 0.2em;font-size:125%;line-height:1.2em;font-weight:bold}.mw-parser-output .sidebar-top-image{padding:0.4em}.mw-parser-output .sidebar-top-caption,.mw-parser-output .sidebar-pretitle-with-top-image,.mw-parser-output .sidebar-caption{padding:0.2em 0.4em 0;line-height:1.2em}.mw-parser-output .sidebar-pretitle{padding:0.4em 0.4em 0;line-height:1.2em}.mw-parser-output .sidebar-title,.mw-parser-output .sidebar-title-with-pretitle{padding:0.2em 0.8em;font-size:145%;line-height:1.2em}.mw-parser-output .sidebar-title-with-pretitle{padding:0.1em 0.4em}.mw-parser-output .sidebar-image{padding:0.2em 0.4em 0.4em}.mw-parser-output .sidebar-heading{padding:0.1em 0.4em}.mw-parser-output .sidebar-content{padding:0 0.5em 0.4em}.mw-parser-output .sidebar-content-with-subgroup{padding:0.1em 0.4em 0.2em}.mw-parser-output .sidebar-above,.mw-parser-output .sidebar-below{padding:0.3em 0.8em;font-weight:bold}.mw-parser-output .sidebar-collapse .sidebar-above,.mw-parser-output .sidebar-collapse .sidebar-below{border-top:1px solid #aaa;border-bottom:1px solid #aaa}.mw-parser-output .sidebar-navbar{text-align:right;font-size:115%;padding:0 0.4em 0.4em}.mw-parser-output .sidebar-list-title{padding:0 0.4em;text-align:left;font-weight:bold;line-height:1.6em;font-size:105%}.mw-parser-output .sidebar-list-title-c{padding:0 0.4em;text-align:center;margin:0 3.3em}@media(max-width:640px){body.mediawiki .mw-parser-output .sidebar{width:100%!important;clear:both;float:none!important;margin-left:0!important;margin-right:0!important}}body.skin--responsive .mw-parser-output .sidebar a>img{max-width:none!important}@media screen{html.skin-theme-clientpref-night .mw-parser-output .sidebar:not(.notheme) .sidebar-list-title,html.skin-theme-clientpref-night .mw-parser-output .sidebar:not(.notheme) .sidebar-title-with-pretitle{background:transparent!important}html.skin-theme-clientpref-night .mw-parser-output .sidebar:not(.notheme) .sidebar-title-with-pretitle a{color:var(--color-progressive)!important}}@media screen and (prefers-color-scheme:dark){html.skin-theme-clientpref-os .mw-parser-output .sidebar:not(.notheme) .sidebar-list-title,html.skin-theme-clientpref-os .mw-parser-output .sidebar:not(.notheme) .sidebar-title-with-pretitle{background:transparent!important}html.skin-theme-clientpref-os .mw-parser-output .sidebar:not(.notheme) .sidebar-title-with-pretitle a{color:var(--color-progressive)!important}}@media print{body.ns-0 .mw-parser-output .sidebar{display:none!important}}</style><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374" /><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374" /><table class="sidebar sidebar-collapse nomobile nowraplinks"><tbody><tr><th class="sidebar-title"><a href="/wiki/Public_finance" title="Public finance">Public finance</a></th></tr><tr><td class="sidebar-image"><span class="mw-image-border" typeof="mw:File/Frameless"><a href="/wiki/File:Government-Vedder-Highsmith-detail-1.jpeg" class="mw-file-description"><img alt="Detail from the mural "Government" by Elihu Vedder in the Library of Congress" src="//upload.wikimedia.org/wikipedia/commons/thumb/c/cd/Government-Vedder-Highsmith-detail-1.jpeg/250px-Government-Vedder-Highsmith-detail-1.jpeg" decoding="async" width="250" height="158" class="mw-file-element" srcset="//upload.wikimedia.org/wikipedia/commons/thumb/c/cd/Government-Vedder-Highsmith-detail-1.jpeg/375px-Government-Vedder-Highsmith-detail-1.jpeg 1.5x, //upload.wikimedia.org/wikipedia/commons/thumb/c/cd/Government-Vedder-Highsmith-detail-1.jpeg/500px-Government-Vedder-Highsmith-detail-1.jpeg 2x" data-file-width="3696" data-file-height="2343" /></a></span></td></tr><tr><td class="sidebar-content"> <div class="sidebar-list mw-collapsible mw-collapsed"><div class="sidebar-list-title" style="background:transparent;border-top:1px solid #99f;text-align:center;;color: var(--color-base)"><a href="/wiki/Public_policy" title="Public policy">Policies</a></div><div class="sidebar-list-content mw-collapsible-content hlist"> <ul><li><a href="/wiki/Agricultural_policy" title="Agricultural policy">Agricultural</a></li> <li><a href="/wiki/Economic_policy" title="Economic policy">Economic</a></li> <li><a href="/wiki/Energy_policy" title="Energy policy">Energy</a></li> <li><a href="/wiki/Industrial_policy" title="Industrial policy">Industrial</a></li> <li><a href="/wiki/Investment_policy" title="Investment policy">Investment</a></li> <li><a href="/wiki/Social_policy" title="Social policy">Social</a></li> <li><a href="/wiki/Trade_policy" class="mw-redirect" title="Trade policy">Trade</a></li> <li><a href="/wiki/Fiscal_policy" title="Fiscal policy">Fiscal</a></li> <li><a href="/wiki/Monetary_policy" title="Monetary policy">Monetary</a></li> <li><a href="/wiki/Policy_mix" title="Policy mix">Policy mix</a></li></ul></div></div></td> </tr><tr><td class="sidebar-content"> <div class="sidebar-list mw-collapsible mw-collapsed"><div class="sidebar-list-title" style="background:transparent;border-top:1px solid #99f;text-align:center;;color: var(--color-base)"><a href="/wiki/Fiscal_policy" title="Fiscal policy">Fiscal policy</a></div><div class="sidebar-list-content mw-collapsible-content hlist"> <ul><li><a href="/wiki/Government_budget" title="Government budget">Budget</a> <ul><li><a href="/wiki/Budgetary_policy" title="Budgetary policy">policy</a></li></ul></li> <li><a href="/wiki/Government_debt" title="Government debt">Debt</a> <ul><li><a href="/wiki/Internal_debt" title="Internal debt">internal</a></li></ul></li> <li><a href="/wiki/Government_budget_deficit" class="mw-redirect" title="Government budget deficit">Deficit / surplus</a></li> <li><a href="/wiki/Finance_minister" class="mw-redirect" title="Finance minister">Finance ministry</a></li> <li><a href="/wiki/Fiscal_union" title="Fiscal union">Fiscal union</a></li> <li><a href="/wiki/Government_revenue" title="Government revenue">Revenue</a></li> <li><a href="/wiki/Government_spending" title="Government spending">Spending</a> <ul><li><a class="mw-selflink selflink">deficit</a></li></ul></li> <li><a href="/wiki/Tax_policy" title="Tax policy">Tax</a></li></ul></div></div></td> </tr><tr><td class="sidebar-content"> <div class="sidebar-list mw-collapsible mw-collapsed"><div class="sidebar-list-title" style="background:transparent;border-top:1px solid #99f;text-align:center;;color: var(--color-base)"><a href="/wiki/Monetary_policy" title="Monetary policy">Monetary policy</a></div><div class="sidebar-list-content mw-collapsible-content hlist"> <ul><li><a href="/wiki/Bank_reserves" title="Bank reserves">Bank reserves</a> <ul><li><a href="/wiki/Reserve_requirement" title="Reserve requirement">requirements</a></li></ul></li> <li><a href="/wiki/Discount_window" title="Discount window">Discount window</a></li> <li><a href="/wiki/Gold_reserves" class="mw-redirect" title="Gold reserves">Gold reserves</a></li> <li><a href="/wiki/Interest_rate" title="Interest rate">Interest rate</a></li> <li><a href="/wiki/Monetary_authority" class="mw-redirect" title="Monetary authority">Monetary authority</a> <ul><li><a href="/wiki/Central_bank" title="Central bank">central bank</a></li> <li><a href="/wiki/Currency_board" title="Currency board">currency board</a></li></ul></li> <li><a href="/wiki/Monetary_base" title="Monetary base">Monetary base</a></li> <li><a href="/wiki/Currency_union" title="Currency union">Monetary (currency) union</a></li> <li><a href="/wiki/Money_supply" title="Money supply">Money supply</a></li></ul></div></div></td> </tr><tr><td class="sidebar-content"> <div class="sidebar-list mw-collapsible mw-collapsed"><div class="sidebar-list-title" style="background:transparent;border-top:1px solid #99f;text-align:center;;color: var(--color-base)"><a href="/wiki/Commercial_policy" title="Commercial policy">Trade policy</a></div><div class="sidebar-list-content mw-collapsible-content hlist"> <ul><li><a href="/wiki/Balance_of_trade" title="Balance of trade">Balance of trade</a></li> <li><a href="/wiki/Free_trade" title="Free trade">Free trade</a></li> <li><a href="/wiki/Gains_from_trade" title="Gains from trade">Gains from trade</a></li> <li><a href="/wiki/Non-tariff_barrier" class="mw-redirect" title="Non-tariff barrier">Non-tariff barrier</a></li> <li><a href="/wiki/Protectionism" title="Protectionism">Protectionism</a></li> <li><a href="/wiki/Tariff" title="Tariff">Tariff</a></li> <li><a href="/wiki/Trade_bloc" title="Trade bloc">Trade bloc</a></li> <li><a href="/wiki/Trade_creation" title="Trade creation">Trade creation</a></li> <li><a href="/wiki/Trade_diversion" title="Trade diversion">Trade diversion</a></li> <li><a href="/wiki/Commerce_minister" title="Commerce minister">Trade / commerce ministry</a></li></ul></div></div></td> </tr><tr><td class="sidebar-content"> <div class="sidebar-list mw-collapsible mw-collapsed"><div class="sidebar-list-title" style="background:transparent;border-top:1px solid #99f;text-align:center;;color: var(--color-base)"><div class="hlist"><ul><li><a href="/wiki/Government_revenue" title="Government revenue">Revenue</a></li><li><a href="/wiki/Government_spending" title="Government spending">Spending</a></li></ul></div></div><div class="sidebar-list-content mw-collapsible-content hlist"> <ul><li><a href="/wiki/Non-tax_revenue" title="Non-tax revenue">Non-tax revenue</a></li> <li><a href="/wiki/Tax_revenue" title="Tax revenue">Tax revenue</a></li> <li><a href="/wiki/Discretionary_spending" title="Discretionary spending">Discretionary spending</a></li> <li><a href="/wiki/Mandatory_spending" title="Mandatory spending">Mandatory spending</a></li></ul></div></div></td> </tr><tr><td class="sidebar-content"> <div class="sidebar-list mw-collapsible mw-collapsed"><div class="sidebar-list-title" style="background:transparent;border-top:1px solid #99f;text-align:center;;color: var(--color-base)">Optimum</div><div class="sidebar-list-content mw-collapsible-content hlist"> <ul><li><a href="/wiki/Balanced_budget" title="Balanced budget">Balanced budget</a></li> <li><a href="/wiki/Economic_growth" title="Economic growth">Economic growth</a></li> <li><a href="/wiki/Fiscal_illusion" title="Fiscal illusion">Fiscal illusion</a></li> <li><a href="/wiki/Price_stability" title="Price stability">Price stability</a></li></ul></div></div></td> </tr><tr><td class="sidebar-content"> <div class="sidebar-list mw-collapsible mw-collapsed"><div class="sidebar-list-title" style="background:transparent;border-top:1px solid #99f;text-align:center;;color: var(--color-base)">Reform</div><div class="sidebar-list-content mw-collapsible-content hlist"> <ul><li><a href="/wiki/Fiscal_adjustment" title="Fiscal adjustment">Fiscal adjustment</a></li> <li><a href="/wiki/Monetary_reform" title="Monetary reform">Monetary reform</a></li></ul></div></div></td> </tr><tr><td class="sidebar-below hlist"> <ul><li><span class="noviewer" typeof="mw:File"><a href="/wiki/File:Symbol_portal_class.svg" class="mw-file-description" title="Portal"><img alt="" src="//upload.wikimedia.org/wikipedia/en/thumb/e/e2/Symbol_portal_class.svg/16px-Symbol_portal_class.svg.png" decoding="async" width="16" height="16" class="mw-file-element" srcset="//upload.wikimedia.org/wikipedia/en/thumb/e/e2/Symbol_portal_class.svg/23px-Symbol_portal_class.svg.png 1.5x, //upload.wikimedia.org/wikipedia/en/thumb/e/e2/Symbol_portal_class.svg/31px-Symbol_portal_class.svg.png 2x" data-file-width="180" data-file-height="185" /></a></span> <a href="/wiki/Portal:Money" title="Portal:Money">Portal</a></li></ul></td></tr><tr><td class="sidebar-navbar"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374" /><style data-mw-deduplicate="TemplateStyles:r1239400231">.mw-parser-output .navbar{display:inline;font-size:88%;font-weight:normal}.mw-parser-output .navbar-collapse{float:left;text-align:left}.mw-parser-output .navbar-boxtext{word-spacing:0}.mw-parser-output .navbar ul{display:inline-block;white-space:nowrap;line-height:inherit}.mw-parser-output .navbar-brackets::before{margin-right:-0.125em;content:"[ "}.mw-parser-output .navbar-brackets::after{margin-left:-0.125em;content:" ]"}.mw-parser-output .navbar li{word-spacing:-0.125em}.mw-parser-output .navbar a>span,.mw-parser-output .navbar a>abbr{text-decoration:inherit}.mw-parser-output .navbar-mini abbr{font-variant:small-caps;border-bottom:none;text-decoration:none;cursor:inherit}.mw-parser-output .navbar-ct-full{font-size:114%;margin:0 7em}.mw-parser-output .navbar-ct-mini{font-size:114%;margin:0 4em}html.skin-theme-clientpref-night .mw-parser-output .navbar li a abbr{color:var(--color-base)!important}@media(prefers-color-scheme:dark){html.skin-theme-clientpref-os .mw-parser-output .navbar li a abbr{color:var(--color-base)!important}}@media print{.mw-parser-output .navbar{display:none!important}}</style><div class="navbar plainlinks hlist navbar-mini"><ul><li class="nv-view"><a href="/wiki/Template:Public_finance" title="Template:Public finance"><abbr title="View this template">v</abbr></a></li><li class="nv-talk"><a href="/wiki/Template_talk:Public_finance" title="Template talk:Public finance"><abbr title="Discuss this template">t</abbr></a></li><li class="nv-edit"><a href="/wiki/Special:EditPage/Template:Public_finance" title="Special:EditPage/Template:Public finance"><abbr title="Edit this template">e</abbr></a></li></ul></div></td></tr></tbody></table> <p>Within the <a href="/wiki/Budgetary_policy" title="Budgetary policy">budgetary process</a>, <b>deficit spending</b> is the amount by which spending exceeds <a href="/wiki/Revenue" title="Revenue">revenue</a> over a particular period of time, also called simply <b>deficit</b>, or <b>budget deficit</b>, the opposite of <a href="/wiki/Budget_surplus" class="mw-redirect" title="Budget surplus">budget surplus</a>.<sup id="cite_ref-1" class="reference"><a href="#cite_note-1"><span class="cite-bracket">[</span>1<span class="cite-bracket">]</span></a></sup> The term may be applied to the budget of a government, private company, or individual. A central point of controversy in economics, government deficit spending was first identified as a necessary economic tool by <a href="/wiki/John_Maynard_Keynes" title="John Maynard Keynes">John Maynard Keynes</a> in the wake of the <a href="/wiki/Great_Depression" title="Great Depression">Great Depression</a>.<sup id="cite_ref-2" class="reference"><a href="#cite_note-2"><span class="cite-bracket">[</span>2<span class="cite-bracket">]</span></a></sup> </p> <meta property="mw:PageProp/toc" /> <div class="mw-heading mw-heading2"><h2 id="Controversy">Controversy</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Deficit_spending&action=edit&section=1" title="Edit section: Controversy"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>Government deficit spending is a central point of controversy in economics, with prominent economists holding differing views.<sup id="cite_ref-3" class="reference"><a href="#cite_note-3"><span class="cite-bracket">[</span>3<span class="cite-bracket">]</span></a></sup> </p><p>The <a href="/wiki/Mainstream_economics" title="Mainstream economics">mainstream economics</a> position is that deficit spending is desirable and necessary as part of <a href="/wiki/Countercyclical" class="mw-redirect" title="Countercyclical">countercyclical</a> <a href="/wiki/Fiscal_policy" title="Fiscal policy">fiscal policy</a>, but that there should not be a <a href="/wiki/Structural_deficit" class="mw-redirect" title="Structural deficit">structural deficit</a> (i.e., permanent deficit): The government should run deficits during <a href="/wiki/Recession" title="Recession">recessions</a> to compensate for the shortfall in <a href="/wiki/Aggregate_demand" title="Aggregate demand">aggregate demand</a>, but should run surpluses in boom times so that there is no net deficit over an <a href="/wiki/Economic_cycle" class="mw-redirect" title="Economic cycle">economic cycle</a> (i.e., only run <a href="/wiki/Cyclical_deficit" class="mw-redirect" title="Cyclical deficit">cyclical deficits</a> and not structural deficits). This is derived from <a href="/wiki/Keynesian_economics" title="Keynesian economics">Keynesian economics</a>, and gained acceptance during the period between the <a href="/wiki/Great_Depression" title="Great Depression">Great Depression</a> in the 1930s and <a href="/wiki/Post-World_War_II" class="mw-redirect" title="Post-World War II">post-WWII</a> in the 1950s.<sup class="noprint Inline-Template Template-Fact" style="white-space:nowrap;">[<i><a href="/wiki/Wikipedia:Citation_needed" title="Wikipedia:Citation needed"><span title="This claim needs references to reliable sources. (April 2014)">citation needed</span></a></i>]</sup> </p><p>This position is attacked from both sides: Advocates of federal-level <a href="/wiki/Fiscal_conservatism" title="Fiscal conservatism">fiscal conservatism</a> argue that deficit spending is always bad policy, while some <a href="/wiki/Post-Keynesian" class="mw-redirect" title="Post-Keynesian">post-Keynesian</a> economists—particularly <a href="/wiki/Chartalism" title="Chartalism">neo-chartalists</a> or proponents of <a href="/wiki/Modern_Monetary_Theory" class="mw-redirect" title="Modern Monetary Theory">Modern Monetary Theory</a>—argue that deficit spending is necessary for the issuance of new money, and not only for fiscal stimulus.<sup class="noprint Inline-Template Template-Fact" style="white-space:nowrap;">[<i><a href="/wiki/Wikipedia:Citation_needed" title="Wikipedia:Citation needed"><span title="This claim needs references to reliable sources. (April 2014)">citation needed</span></a></i>]</sup> According to most economists, during recessions, the government can stimulate the economy by intentionally running a deficit. </p><p>The deficit spending requested by <a href="/wiki/John_Maynard_Keynes" title="John Maynard Keynes">John Maynard Keynes</a> for overcoming crises is the monetary side of his economy theory. As investment equates to real saving, money assets that build up are equivalent to debt capacity. Therefore, the excess saving of money in time of crisis should correspond to increased levels of <a href="/wiki/Debt" title="Debt">borrowing</a>, as this generally doesn't happen - the result is intensification of the crisis, as revenues from which money could be saved decline while a higher level of debt is needed to compensate for the collapsing revenues. The state's deficit enables a correspondent buildup of money assets for the <a href="/wiki/Private_sector" title="Private sector">private sector</a> and prevents the breakdown of the economy, preventing private money savings to be run down by private debt. </p><p>The monetary mechanism describing how revenue surpluses enforce corresponding expense surpluses, and how these in turn lead to economic breakdown was explained by <a href="/wiki/Wolfgang_St%C3%BCtzel" title="Wolfgang Stützel">Wolfgang Stützel</a> much later by the means of his <a href="/wiki/Balances_Mechanics" title="Balances Mechanics">Balances Mechanics</a>. </p> <p><a href="/wiki/William_Vickrey" title="William Vickrey">William Vickrey</a>, awarded the 1996 Nobel Memorial Prize in Economic Sciences, identified deficits being viewed as profligate spending as his #1 fallacy of Financial Fundamentalism when he commented: <style data-mw-deduplicate="TemplateStyles:r1244412712">.mw-parser-output .templatequote{overflow:hidden;margin:1em 0;padding:0 32px}.mw-parser-output .templatequotecite{line-height:1.5em;text-align:left;margin-top:0}@media(min-width:500px){.mw-parser-output .templatequotecite{padding-left:1.6em}}</style></p><blockquote class="templatequote"><p>"This fallacy seems to stem from a <a href="/wiki/False_analogy" class="mw-redirect" title="False analogy">false analogy</a> to borrowing by individuals. Current reality is almost the exact opposite. Deficits add to the net disposable income of individuals, to the extent that government disbursements that constitute income to recipients exceed that abstracted from disposable income in taxes, fees, and other charges. This added purchasing power, when spent, provides markets for private production, inducing producers to invest in additional plant capacity, which will form part of the real heritage left to the future. This is in addition to whatever public investment takes place in infrastructure, education, research, and the like. Larger deficits, sufficient to recycle savings out of a growing gross domestic product (GDP) in excess of what can be recycled by profit-seeking private investment, are not an economic sin but an economic necessity. Deficits in excess of a gap growing as a result of the maximum feasible growth in real output might indeed cause problems, but we are nowhere near that level. Even the analogy itself is faulty. If General Motors, AT&T, and individual households had been required to balance their budgets in the manner being applied to the Federal government, there would be no corporate bonds, no mortgages, no bank loans, and many fewer automobiles, telephones, and houses."</p><div class="templatequotecite">— <cite>15 Fatal Fallacies of Financial Fundamentalism<sup id="cite_ref-4" class="reference"><a href="#cite_note-4"><span class="cite-bracket">[</span>4<span class="cite-bracket">]</span></a></sup></cite></div></blockquote> <div class="mw-heading mw-heading3"><h3 id="Fiscal_conservatism">Fiscal conservatism</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Deficit_spending&action=edit&section=2" title="Edit section: Fiscal conservatism"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>Advocates of <a href="/wiki/Fiscal_conservatism" title="Fiscal conservatism">fiscal conservatism</a> reject Keynesianism by arguing that government should <i>always</i> run a <a href="/wiki/Balanced_budget" title="Balanced budget">balanced budget</a> (and a surplus to pay down any outstanding debt), and that deficit spending is <i>always</i> bad policy.<sup class="noprint Inline-Template Template-Fact" style="white-space:nowrap;">[<i><a href="/wiki/Wikipedia:Citation_needed" title="Wikipedia:Citation needed"><span title="This claim needs references to reliable sources. (April 2014)">citation needed</span></a></i>]</sup> The <a href="/wiki/Neoclassical_economics" title="Neoclassical economics">neoclassical</a>-inclined <a href="/wiki/Chicago_school_of_economics" title="Chicago school of economics">Chicago school of economics</a> has supported fiscal conservative ideas. Numerous states of the United States have a <a href="/wiki/Balanced_budget_amendment" title="Balanced budget amendment">balanced budget amendment</a> to their state constitution, and the <a href="/wiki/Stability_and_Growth_Pact" title="Stability and Growth Pact">Stability and Growth Pact</a> of the <a href="/wiki/European_Monetary_Union" class="mw-redirect" title="European Monetary Union">European Monetary Union</a> punishes government deficits of 3% of GDP or greater. </p><p>Proponents of fiscal conservatism date back to <a href="/wiki/Adam_Smith" title="Adam Smith">Adam Smith</a>, founder of modern economics.<sup class="noprint Inline-Template Template-Fact" style="white-space:nowrap;">[<i><a href="/wiki/Wikipedia:Citation_needed" title="Wikipedia:Citation needed"><span title="for entire paragraph (April 2014)">citation needed</span></a></i>]</sup> Fiscal conservatism was the dominant position until the Great Depression, associated with the <a href="/wiki/Gold_standard" title="Gold standard">gold standard</a> and expressed in the now outdated <a href="/wiki/Treasury_View" class="mw-redirect" title="Treasury View">Treasury View</a> that government fiscal policy is ineffective.<sup class="noprint Inline-Template Template-Fact" style="white-space:nowrap;">[<i><a href="/wiki/Wikipedia:Citation_needed" title="Wikipedia:Citation needed"><span title="for entire paragraph (April 2014)">citation needed</span></a></i>]</sup> </p><p>The usual argument against deficit spending is the <a href="/wiki/Government-Household_analogy" title="Government-Household analogy">Government-Household analogy</a>: <i>households</i> should not run deficits—one should have money before one spends it, from prudence—and that what is correct for a household is correct for a nation and its government. A similar argument is that deficit spending today will require increased taxation in the future, thus burdening future generations. (See <a href="/wiki/Generational_accounting" title="Generational accounting">generational accounting</a> for discussion.) </p><p>Others argue that because debt is both owed <i>by</i> and owed <i>to</i> private individuals, there is no <i>net</i> debt burden of government debt, just wealth transfer (redistribution) from those who owe debt (government, backed by tax payers) to those who hold debt (holders of government bonds).<sup id="cite_ref-5" class="reference"><a href="#cite_note-5"><span class="cite-bracket">[</span>5<span class="cite-bracket">]</span></a></sup> </p><p>A related line of argument, associated with the <a href="/wiki/Austrian_school_of_economics" title="Austrian school of economics">Austrian school of economics</a>, is that government deficits are <a href="/wiki/Inflationary" class="mw-redirect" title="Inflationary">inflationary</a>. Anything other than mild or moderate inflation is generally accepted in economics to be a bad thing. In practice this is argued to be because governments pay off debts by printing money, increasing the money supply and creating inflation, and is taken further by some as an argument against fiat money and in favor of <a href="/wiki/Hard_money_(policy)" title="Hard money (policy)">hard money</a>, especially the gold standard.<sup id="cite_ref-6" class="reference"><a href="#cite_note-6"><span class="cite-bracket">[</span>6<span class="cite-bracket">]</span></a></sup> </p> <div class="mw-heading mw-heading3"><h3 id="Post-Keynesian_economics">Post-Keynesian economics</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Deficit_spending&action=edit&section=3" title="Edit section: Post-Keynesian economics"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>Some Post-Keynesian economists argue that deficit spending is <i>necessary,</i> either to create the money supply (Chartalism) or to satisfy demand for savings in excess of what can be satisfied by private investment.<sup class="noprint Inline-Template Template-Fact" style="white-space:nowrap;">[<i><a href="/wiki/Wikipedia:Citation_needed" title="Wikipedia:Citation needed"><span title="for entire paragraph (April 2014)">citation needed</span></a></i>]</sup> </p><p><a href="/wiki/Chartalist" class="mw-redirect" title="Chartalist">Chartalists</a> argue that deficit spending is logically necessary because, in their view, <a href="/wiki/Fiat_money" title="Fiat money">fiat money</a> is <i>created</i> by deficit spending: fiat money cannot be collected in taxes before it is issued <i>and spent</i>; the amount of fiat money in circulation is exactly the <a href="/wiki/Government_debt" title="Government debt">government debt</a>—money spent but not collected in taxes. In a quip, "fiat money governments are 'spend and tax', not '<a href="/wiki/Tax_and_spend" title="Tax and spend">tax and spend</a>'"—deficit spending comes first. </p><p>Chartalists argue that nations are fundamentally different from households. Governments in a fiat money system which only have debt in their own currency can issue other liabilities, their fiat money, to pay off their interest bearing bond debt. They cannot go bankrupt involuntarily because this fiat money is what is used in their economy to settle debts, while household liabilities are not so used. This view is summarized as: </p> <link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1244412712" /><blockquote class="templatequote"><p>But it is hard to understand how the concept of "budget busting" applies to a government which, as a sovereign issuer of its own currency, can always create dollars to spend. There is, in other words, no budget to "bust". A national "budget" is merely an account of national spending priorities, and does not represent an external constraint in the manner of a household budget.<sup id="cite_ref-7" class="reference"><a href="#cite_note-7"><span class="cite-bracket">[</span>7<span class="cite-bracket">]</span></a></sup></p></blockquote> <p>Continuing in this vein, Chartalists argue that a structural deficit is <i>necessary</i> for <a href="/wiki/Monetary_expansion" class="mw-redirect" title="Monetary expansion">monetary expansion</a> in an expanding economy: if the economy grows, the money supply should as well, which should be accomplished by government deficit spending. Private sector savings are equal to government sector deficits, to the penny. In the absence of sufficient deficit spending, money supply can increase by increasing <a href="/wiki/Financial_leverage" class="mw-redirect" title="Financial leverage">financial leverage</a> in the economy—the amount of <a href="/wiki/Bank_money" class="mw-redirect" title="Bank money">bank money</a> grows, while the <a href="/wiki/Base_money" class="mw-redirect" title="Base money">base money</a> supply remains unchanged or grows at a slower rate, and thus the ratio (leverage = credit/base) increases—which can lead to a <a href="/wiki/Credit_bubble" class="mw-redirect" title="Credit bubble">credit bubble</a> and a <a href="/wiki/Financial_crisis" title="Financial crisis">financial crisis</a>.<sup class="noprint Inline-Template Template-Fact" style="white-space:nowrap;">[<i><a href="/wiki/Wikipedia:Citation_needed" title="Wikipedia:Citation needed"><span title="for entire paragraph (April 2014)">citation needed</span></a></i>]</sup> </p><p>Chartalism is a small minority view in economics; while it has had advocates over the years, and influenced Keynes, who specifically credited it,<sup id="cite_ref-8" class="reference"><a href="#cite_note-8"><span class="cite-bracket">[</span>8<span class="cite-bracket">]</span></a></sup> A notable proponent was Ukrainian-American economist <a href="/wiki/Abba_P._Lerner" title="Abba P. Lerner">Abba P. Lerner</a>, who founded the school of <a href="/wiki/Neo-Chartalism" class="mw-redirect" title="Neo-Chartalism">Neo-Chartalism</a>, and advocated deficit spending in his theory of <a href="/wiki/Functional_finance" title="Functional finance">functional finance</a>. A contemporary center of Neo-Chartalism is the <a href="/wiki/Post-Keynesian_economics#Kansas_City_School" title="Post-Keynesian economics">Kansas City School</a> of economics. </p><p>Chartalists, like other Keynesians, accept the <a href="/wiki/Paradox_of_thrift" title="Paradox of thrift">paradox of thrift</a>, which argues that identifying behavior of individual households and the nation as a whole commits the <a href="/wiki/Fallacy_of_composition" title="Fallacy of composition">fallacy of composition</a>; while the paradox of thrift (and thus deficit spending for fiscal stimulus) is widely accepted in economics, the Chartalist form is not.<sup class="noprint Inline-Template Template-Fact" style="white-space:nowrap;">[<i><a href="/wiki/Wikipedia:Citation_needed" title="Wikipedia:Citation needed"><span title="for entire paragraph (April 2014)">citation needed</span></a></i>]</sup> </p><p>An alternative argument for the necessity of deficits was given by U.S. economist <a href="/wiki/William_Vickrey" title="William Vickrey">William Vickrey</a>, who argued that deficits were necessary to satisfy demand for savings in excess of what can be satisfied by private investment. </p> <link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1244412712" /><blockquote class="templatequote"><p><i>Larger deficits,</i> sufficient to recycle savings out of a growing gross domestic product (GDP) in excess of what can be recycled by profit-seeking private investment, are not an economic sin but <i>an economic necessity.</i><sup id="cite_ref-9" class="reference"><a href="#cite_note-9"><span class="cite-bracket">[</span>9<span class="cite-bracket">]</span></a></sup></p></blockquote> <div class="mw-heading mw-heading2"><h2 id="Government_deficits">Government deficits</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Deficit_spending&action=edit&section=4" title="Edit section: Government deficits"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>When the outlay of a government (i.e., the total of its purchases of goods and services, transfers in grants to individuals and corporations, and its net interest payments) exceeds its tax <a href="/wiki/Revenue" title="Revenue">revenues</a>, the government budget is said to be in <a href="/wiki/Government_budget_deficit" class="mw-redirect" title="Government budget deficit">deficit</a>; government spending in excess of tax receipts is known as deficit spending. For a government that uses <a href="/wiki/Accrual_accounting_in_the_public_sector" title="Accrual accounting in the public sector"> accrual accounting</a> (rather than <a href="/wiki/Cash_accounting" class="mw-redirect" title="Cash accounting">cash accounting</a>) the budget balance is calculated using only spending on current operations, with expenditure on new capital assets excluded.<sup id="cite_ref-Blondal2004_10-0" class="reference"><a href="#cite_note-Blondal2004-10"><span class="cite-bracket">[</span>10<span class="cite-bracket">]</span></a></sup><sup class="reference nowrap"><span title="Page / location: 114–116">: 114–116 </span></sup> </p><p>Governments usually issue <a href="/wiki/Government_bond" title="Government bond">bonds</a> to match their deficits. They can be bought by its <a href="/wiki/Central_Bank" class="mw-redirect" title="Central Bank">Central Bank</a> through <a href="/wiki/Open_market_operations" class="mw-redirect" title="Open market operations">open market operations</a>. Otherwise the debt issuance can increase the level of (i) public debt, (ii) private sector net worth, (iii) debt service (interest payments), and (iv) interest rates. (See <a href="#Crowding_out">Crowding out</a> below.) Deficit spending may, however, be consistent with public debt remaining stable as a proportion of <a href="/wiki/GDP" class="mw-redirect" title="GDP">GDP</a>, depending on the level of GDP growth.<sup class="noprint Inline-Template Template-Fact" style="white-space:nowrap;">[<i><a href="/wiki/Wikipedia:Citation_needed" title="Wikipedia:Citation needed"><span title="for entire paragraph (April 2014)">citation needed</span></a></i>]</sup> </p><p>The opposite of a budget deficit is a <a href="/wiki/Budget_surplus" class="mw-redirect" title="Budget surplus">budget surplus</a>; in this case, tax revenues exceed government purchases and transfer payments. For the public sector to be in deficit implies that the private sector (domestic and foreign) is in surplus. An increase in public indebtedness must necessarily therefore correspond to an equal decrease in private sector net indebtedness. In other words, deficit spending permits the private sector to accumulate net worth. </p><p>On average, through the economic cycle, most governments have tended to run budget deficits, as can be seen from the <a href="/wiki/List_of_countries_by_public_debt" class="mw-redirect" title="List of countries by public debt">large debt balances accumulated by governments across the world</a>. </p> <div class="mw-heading mw-heading3"><h3 id="Keynesian_effect">Keynesian effect</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Deficit_spending&action=edit&section=5" title="Edit section: Keynesian effect"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>Following <a href="/wiki/John_Maynard_Keynes" title="John Maynard Keynes">John Maynard Keynes</a>, many <a href="/wiki/Economist" title="Economist">economists</a> recommend deficit spending to moderate or end a <a href="/wiki/Recession" title="Recession">recession</a>, especially a severe one. When the economy has high unemployment, an increase in government purchases creates a market for business output, creating income and encouraging increases in <a href="/wiki/Consumer_spending" title="Consumer spending">consumer spending</a>, which creates further increases in the demand for business output. (This is the <a href="/wiki/Multiplier_(economics)" title="Multiplier (economics)">multiplier effect</a>.) This raises the real <a href="/wiki/Gross_domestic_product" title="Gross domestic product">gross domestic product</a> (GDP) and the employment of labour, and if all else is constant, lowers the unemployment rate. (The connection between demand for GDP and unemployment is called <a href="/wiki/Okun%27s_law" title="Okun's law">Okun's law</a>.) </p><p>The increased size of the market, due to government deficits, can further stimulate the economy by raising business profitability and spurring optimism, which encourages private fixed investment in factories, machines, and the like to rise. This <a href="/wiki/Accelerator_effect" title="Accelerator effect">accelerator effect</a> stimulates demand further and encourages rising employment. </p><p>Similarly, running a government surplus or reducing its deficit reduces consumer and business spending and raises unemployment. This can lower the inflation rate. Any use of the government deficit to steer the macro-economy is called <a href="/wiki/Fiscal_policy" title="Fiscal policy">fiscal policy</a>. </p><p>A deficit does not simply stimulate demand. If private investment is stimulated, that increases the ability of the economy to supply <a href="/wiki/Potential_output" title="Potential output">output</a> in the long run. Also, if the government's deficit is spent on such things as infrastructure, basic research, public health, and education, that can also increase potential output in the long run. Finally, the high demand that a government deficit provides may actually allow greater growth of potential supply, following <a href="/wiki/Verdoorn%27s_law" title="Verdoorn's law">Verdoorn's law</a>. </p><p>Deficit spending may create <a href="/wiki/Inflation" title="Inflation">inflation</a>, or encourage existing inflation to persist. For example, in the <a href="/wiki/United_States" title="United States">United States</a> Vietnam-war era deficits encouraged inflation. This is especially true at low unemployment rates. But government deficits are not the only cause of inflation: It can arise due to such supply-side shocks as the oil crises of the 1970s and inflation left over from the past (e.g., inflationary expectations and the <a href="/wiki/Price/wage_spiral" class="mw-redirect" title="Price/wage spiral">price/wage spiral</a>). </p><p>If equilibrium is located on the <a href="/wiki/Aggregate_supply" title="Aggregate supply">classical range of the supply graph</a>, an increase in government spending will lead to inflation without affecting unemployment. There must also be enough money circulating in the system to allow inflation to persist, so that inflation depends on <a href="/wiki/Monetary_policy" title="Monetary policy">monetary policy</a>.<sup class="noprint Inline-Template Template-Fact" style="white-space:nowrap;">[<i><a href="/wiki/Wikipedia:Citation_needed" title="Wikipedia:Citation needed"><span title="for entire paragraph (April 2014)">citation needed</span></a></i>]</sup> </p> <div class="mw-heading mw-heading3"><h3 id="Loanable_funds">Loanable funds</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Deficit_spending&action=edit&section=6" title="Edit section: Loanable funds"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>Many economists believe government deficits influence the economy through the <a href="/wiki/Loanable_funds_market" class="mw-redirect" title="Loanable funds market">loanable funds market</a>, whose existence Chartalists and other Post-Keynesians dispute. Government borrowing in this market increases the demand for loanable funds and thus (ignoring other changes) pushes up interest rates. Rising interest rates can crowd out, or discourage, fixed private investment spending, canceling out some or even all of the demand stimulus arising from the deficit—and perhaps hurting long-term supply-side growth. </p><p>Increased deficits also raise the amount of total income received, which raises the amount of saving done by individuals and corporations and thus the supply of loanable funds, lowering interest rates. Thus, crowding out is a problem only when the economy is already close to <a href="/wiki/Full_employment" title="Full employment">full employment</a> (say, at about 4% unemployment) and the scope for increasing income and saving is blocked by resource constraints (<a href="/wiki/Potential_output" title="Potential output">potential output</a>). </p><p>Despite a government debt that exceeded GDP in 1945, the U.S. saw the long prosperity of the 1950s and 1960s. The growth of the <a href="/wiki/Supply_side" class="mw-redirect" title="Supply side">supply side</a>, it seems, was not hurt by the large deficits and debts.<sup class="noprint Inline-Template Template-Fact" style="white-space:nowrap;">[<i><a href="/wiki/Wikipedia:Citation_needed" title="Wikipedia:Citation needed"><span title="for entire paragraph (April 2014)">citation needed</span></a></i>]</sup> </p><p>A government deficit increases <a href="/wiki/Government_debt" title="Government debt">government debt</a>. In many countries the government borrows by selling bonds rather than borrowing from banks. The most important burden of this debt is the interest that must be paid to bond-holders, which restricts a government's ability to raise its outlays or cut taxes to attain other goals. </p> <div class="mw-heading mw-heading3"><h3 id="Crowding_out">Crowding out</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Deficit_spending&action=edit&section=7" title="Edit section: Crowding out"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <style data-mw-deduplicate="TemplateStyles:r1236090951">.mw-parser-output .hatnote{font-style:italic}.mw-parser-output div.hatnote{padding-left:1.6em;margin-bottom:0.5em}.mw-parser-output .hatnote i{font-style:normal}.mw-parser-output .hatnote+link+.hatnote{margin-top:-0.5em}@media print{body.ns-0 .mw-parser-output .hatnote{display:none!important}}</style><div role="note" class="hatnote navigation-not-searchable">Main article: <a href="/wiki/Crowding_out_(economics)" title="Crowding out (economics)">Crowding out (economics)</a></div> <p>Usually when economists use the term "crowding out" they are referring to the government spending using up financial and other resources that would otherwise be used by private enterprise. However, some commentators use "crowding out" to refer to government providing a service or good that would otherwise be a business opportunity for private industry.<sup class="noprint Inline-Template Template-Fact" style="white-space:nowrap;">[<i><a href="/wiki/Wikipedia:Citation_needed" title="Wikipedia:Citation needed"><span title="for entire paragraph (April 2014)">citation needed</span></a></i>]</sup> </p> <div class="mw-heading mw-heading3"><h3 id="Unintentional_deficits">Unintentional deficits</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Deficit_spending&action=edit&section=8" title="Edit section: Unintentional deficits"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>National government deficits may be intentional, a result of policy decisions, or unintentional. When an economy goes into a recession, deficits usually rise in the more affluent countries. Revenue from <a href="/wiki/Progressive_tax" title="Progressive tax">progressive taxes</a> based on economic activity (income, expenditure, or transactions) falls. Other sources of tax revenue such as <a href="/wiki/Wealth_tax" title="Wealth tax">wealth taxes</a>, notably <a href="/wiki/Property_tax" title="Property tax">property taxes</a>, are not subject to recessions, though they are subject to asset price bubbles. Transfer payments due to increased unemployment and reduced household income rise. </p> <div class="mw-heading mw-heading3"><h3 id="Automatic_vs._active_deficit_policies">Automatic vs. active deficit policies</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Deficit_spending&action=edit&section=9" title="Edit section: Automatic vs. active deficit policies"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1236090951" /><div role="note" class="hatnote navigation-not-searchable">Further information: <a href="/wiki/Automatic_stabilizer" title="Automatic stabilizer">Automatic stabilizer</a></div> <p>Most economists favor the use of <a href="/wiki/Automatic_stabilizer" title="Automatic stabilizer">automatic stabilization</a> over active or discretionary use of deficits to fight mild recessions (or surpluses to combat inflation). Active policy-making takes too long for politicians to institute and too long to affect the economy. Often, the medicine ends up affecting the economy only after its disease has been cured, leaving the economy with side-effects such as inflation. For example, President <a href="/wiki/John_F._Kennedy" title="John F. Kennedy">John F. Kennedy</a> proposed tax cuts in response to the high unemployment of 1960, but these were instituted only in 1964 and impacted the economy only in 1965 or 1966 and the increased debt encouraged inflation, reinforcing the effect of Vietnam war deficit spending.<sup class="noprint Inline-Template Template-Fact" style="white-space:nowrap;">[<i><a href="/wiki/Wikipedia:Citation_needed" title="Wikipedia:Citation needed"><span title="for entire paragraph (April 2014)">citation needed</span></a></i>]</sup> </p> <div class="mw-heading mw-heading2"><h2 id="Structural_and_cyclical_deficit">Structural and cyclical deficit</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Deficit_spending&action=edit&section=10" title="Edit section: Structural and cyclical deficit"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <figure class="mw-halign-right" typeof="mw:File/Thumb"><a href="/wiki/File:Structural_%26_Cyclical_Components_of_Budget,_jjron,_21.05.2013.gif" class="mw-file-description"><img src="//upload.wikimedia.org/wikipedia/commons/thumb/2/2b/Structural_%26_Cyclical_Components_of_Budget%2C_jjron%2C_21.05.2013.gif/350px-Structural_%26_Cyclical_Components_of_Budget%2C_jjron%2C_21.05.2013.gif" decoding="async" width="350" height="231" class="mw-file-element" srcset="//upload.wikimedia.org/wikipedia/commons/thumb/2/2b/Structural_%26_Cyclical_Components_of_Budget%2C_jjron%2C_21.05.2013.gif/525px-Structural_%26_Cyclical_Components_of_Budget%2C_jjron%2C_21.05.2013.gif 1.5x, //upload.wikimedia.org/wikipedia/commons/thumb/2/2b/Structural_%26_Cyclical_Components_of_Budget%2C_jjron%2C_21.05.2013.gif/700px-Structural_%26_Cyclical_Components_of_Budget%2C_jjron%2C_21.05.2013.gif 2x" data-file-width="728" data-file-height="480" /></a><figcaption>Structural (blue) and cyclical (green) components are summed to give the headline deficit/surplus (red) for a hypothetical economy.</figcaption></figure> <p><b>Structural and cyclical deficits</b> are two components of deficit spending. These terms are especially applied to <a href="/wiki/Public_sector" title="Public sector">public sector</a> spending which contributes to the <a href="/wiki/Government_budget_balance" title="Government budget balance">budget balance</a> of the overall <a href="/wiki/Economy" title="Economy">economy</a> of a country. The total budget deficit, or headline deficit, is equal to the sum of the structural deficit and the cyclical deficit (or surplus/es). </p> <div class="mw-heading mw-heading3"><h3 id="Cyclical_deficit">Cyclical deficit</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Deficit_spending&action=edit&section=11" title="Edit section: Cyclical deficit"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>A cyclical (temporary) deficit is a deficit that is related to the <a href="/wiki/Business_cycle" title="Business cycle">business or economic cycle</a>. The business cycle is the period of time it takes for an economy to move from <a href="/wiki/Economic_expansion" title="Economic expansion">expansion</a> to <a href="/wiki/Economic_contraction" class="mw-redirect" title="Economic contraction">contraction</a>, until it begins to expand again. This cycle can last anywhere from several months to many years, and does not follow a predictable pattern.<sup id="cite_ref-ftl-buscycle_11-0" class="reference"><a href="#cite_note-ftl-buscycle-11"><span class="cite-bracket">[</span>11<span class="cite-bracket">]</span></a></sup> </p><p>The cyclical deficit is the deficit experienced at the low point of this cycle when there are lower levels of business activity and higher levels of <a href="/wiki/Unemployment" title="Unemployment">unemployment</a>. This leads to lower government revenues from <a href="/wiki/Taxation" class="mw-redirect" title="Taxation">taxation</a> and higher government expenditure on things like <a href="/wiki/Social_security" class="mw-redirect" title="Social security">social security</a>, which may cause the economy to go into deficit. While the cyclical component is affected by government decisions, it is mainly influenced by national and international economic conditions which can be significantly beyond government control. </p> <div class="mw-heading mw-heading3"><h3 id="Structural_deficit">Structural deficit</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Deficit_spending&action=edit&section=12" title="Edit section: Structural deficit"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>A structural (permanent) deficit differs from a cyclical deficit in that it exists regardless of the point in the business cycle due to an underlying imbalance in government revenues and expenditures. Thus, even at the high point of the business cycle when revenues are high the country's economy may still be in deficit.<sup id="cite_ref-ftl-strucdef_12-0" class="reference"><a href="#cite_note-ftl-strucdef-12"><span class="cite-bracket">[</span>12<span class="cite-bracket">]</span></a></sup> </p><p>The structural component of the budget is used by some economists as an indication of a government's financial management, as it indicates the underlying balance between long-term government revenues and expenditure, while removing factors that are mainly attributable to the business cycle. Other economists see the structural deficit as simply a reflection of the implied discretionary fiscal stance of the government, that is, a structural deficit would be an expansionary fiscal stance that promotes at least nominal economic growth. </p><p>Where deficits are being funded by borrowing, a structural deficit is seen by some economists as an issue for a government as even at the high points of the business cycle the government may need to continue to borrow and thus continue to accumulate <a href="/wiki/Debt" title="Debt">debt</a>. According to them, this would lead to continued "deterioration" of the <a href="/wiki/Debt-to-GDP_ratio" title="Debt-to-GDP ratio">debt-to-GDP ratio</a>, a basic measure of the health of an economy and an indication of the country's ability to pay off its debts.<sup id="cite_ref-ftl-strucdef_12-1" class="reference"><a href="#cite_note-ftl-strucdef-12"><span class="cite-bracket">[</span>12<span class="cite-bracket">]</span></a></sup> </p><p>Other economists believe that provided the debt is issued in the country's own currency, and provided that currency 'floats' freely against other currencies, and provided the overall level of the deficit is not so large as to cause excessive inflation, then structural deficits are harmless. Those economists who believe that structural deficits need to be reduced argue that structural deficit issues can only be addressed by explicit and direct <a href="/wiki/Government_policy" class="mw-redirect" title="Government policy">government policies</a>, primarily involving reducing government spending or increasing <a href="/wiki/Taxation" class="mw-redirect" title="Taxation">taxation</a>. </p><p>An alternative in countries which have <a href="/wiki/Fiat_money" title="Fiat money">fiat money</a> is to address high levels of debt and a poor debt-to-GDP ratio by <a href="/wiki/Monetising#Monetizing_debt" class="mw-redirect" title="Monetising">monetising the debt</a>, essentially <a href="/wiki/Money_creation" title="Money creation">creating more money</a> to be used to pay off the debt. Monetising the debt can lead to high levels of <a href="/wiki/Inflation" title="Inflation">inflation</a>, but with proper fiscal control this can be minimised or even avoided<sup class="noprint Inline-Template Template-Fact" style="white-space:nowrap;">[<i><a href="/wiki/Wikipedia:Citation_needed" title="Wikipedia:Citation needed"><span title="This claim needs references to reliable sources. (May 2015)">citation needed</span></a></i>]</sup>. Both it and the final option of <a href="/wiki/Default_(finance)" title="Default (finance)">defaulting</a> on the debt are thought to be poor results for <a href="/wiki/Investor" title="Investor">investors</a>.<sup id="cite_ref-ftl-strucdef_12-2" class="reference"><a href="#cite_note-ftl-strucdef-12"><span class="cite-bracket">[</span>12<span class="cite-bracket">]</span></a></sup> There having been recent incidents involving <a href="/wiki/Quantitative_easing" title="Quantitative easing">quantitative easing</a> in the UK, the U.S. and the Eurozone following the 2008 global financial crisis. These are the first instances of either since the dropping of the <a href="/wiki/Gold_standard" title="Gold standard">gold standard</a>.<sup class="noprint Inline-Template Template-Fact" style="white-space:nowrap;">[<i><a href="/wiki/Wikipedia:Citation_needed" title="Wikipedia:Citation needed"><span title="This claim needs references to reliable sources. (May 2015)">citation needed</span></a></i>]</sup> </p><p>Structural deficits may be planned, or may be unintentional due to poor economic management or a fundamental lack of economic capacity in a country. In a planned structural deficit, the government may commit to spending money on the future of the country in order to improve the productive potential of the economy, for example investing in <a href="/wiki/Infrastructure" title="Infrastructure">infrastructure</a>, <a href="/wiki/Education" title="Education">education</a>, or <a href="/wiki/Transport" title="Transport">transport</a>, with the intention that this investment will yield long-term economic gains. If these investments work out as planned the structural deficit will be dealt with over the long-term due to the returns on investment. However, if expenditures continue to exceed revenues, the structural deficit will worsen. </p><p>A government may also knowingly plan the budget to be in deficit in order to sustain the country's <a href="/wiki/Standard_of_living" title="Standard of living">standard of living</a> and continue its obligations to the citizens, although this would generally be an indication of poor economic management. Ongoing planned structural deficits may eventually lead to a crisis of confidence in investors regarding the country's ability to pay the debt, as seen in the <a href="/wiki/Financial_crisis" title="Financial crisis">financial crises</a> in a number of European countries since the late-2000s, especially the <a href="/wiki/Greek_government-debt_crisis" title="Greek government-debt crisis">Greek</a> and <a href="/wiki/2008%E2%80%9313_Spanish_financial_crisis" class="mw-redirect" title="2008–13 Spanish financial crisis">Spanish</a> financial crises.<sup id="cite_ref-ftl-strucdef_12-3" class="reference"><a href="#cite_note-ftl-strucdef-12"><span class="cite-bracket">[</span>12<span class="cite-bracket">]</span></a></sup> </p> <div class="mw-heading mw-heading3"><h3 id="Structural_and_cyclical_surplus">Structural and cyclical surplus</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Deficit_spending&action=edit&section=13" title="Edit section: Structural and cyclical surplus"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>Structural and cyclical <a href="/wiki/Budget_surplus" class="mw-redirect" title="Budget surplus">surpluses</a> are the opposite of the deficits described above. With a <i>cyclical surplus</i>, at the high point of the business cycle government revenue will be expected to be higher and government expenditure lower, meaning revenue exceeds expenditure and the government experiences a surplus. Likewise, a <i>structural surplus</i> is when the government budget is fundamentally operating at a surplus regardless of its point in the business cycle. </p> <div class="mw-heading mw-heading3"><h3 id="Interplay_of_structural_and_cyclical_components">Interplay of structural and cyclical components</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Deficit_spending&action=edit&section=14" title="Edit section: Interplay of structural and cyclical components"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>The overall <a href="/wiki/Government_budget_balance" title="Government budget balance">government budget balance</a> is determined by the sum of the cyclical deficit or surplus and the structural deficit or surplus (refer to chart). Therefore, for example, a cyclical surplus could mask an underlying structural deficit, as the overall budget may appear to be in surplus if the cyclical surplus is greater than the structural deficit. In this case, as economic conditions deteriorated and the budget went into cyclical deficit, the structural and cyclical deficits would then compound leading to higher deficits and more dire economic conditions.<sup id="cite_ref-smh-budhow_13-0" class="reference"><a href="#cite_note-smh-budhow-13"><span class="cite-bracket">[</span>13<span class="cite-bracket">]</span></a></sup><sup id="cite_ref-abc-howardrudd_14-0" class="reference"><a href="#cite_note-abc-howardrudd-14"><span class="cite-bracket">[</span>14<span class="cite-bracket">]</span></a></sup> </p><p>An example of this occurred in Australia during the later years of the <a href="/wiki/Howard_government" title="Howard government">Howard government</a>. From 2009 <a href="/wiki/Department_of_the_Treasury_(Australia)" class="mw-redirect" title="Department of the Treasury (Australia)">Treasury</a> attempted to separate cyclical and structural components of the budget balance, and first started publishing estimates of the structural component. Treasury showed that despite a run of large and often unexpected headline surpluses, the Australian economy was in fact in structural deficit from at least 2006–2007, and was deteriorating as far back as 2002–2003. At this time they determined that despite a headline surplus of <a href="/wiki/Australian_dollar" title="Australian dollar">A$</a>17.2 billion in 2006–2007, there was an underlying structural deficit of around $3 billion, or 0.3% of <a href="/wiki/GDP" class="mw-redirect" title="GDP">GDP</a>.<sup id="cite_ref-smh-budhow_13-1" class="reference"><a href="#cite_note-smh-budhow-13"><span class="cite-bracket">[</span>13<span class="cite-bracket">]</span></a></sup> </p><p>This structural deficit was caused by a <a href="/wiki/Mining" title="Mining">mining</a> <a href="/wiki/Economic_boom" class="mw-redirect" title="Economic boom">boom</a> leading to extremely high revenues and large surpluses for several consecutive years, which the Howard government then used to fuel spending and tax cuts, rather than saving or investing them to cover future cyclical downturns. With the <a href="/wiki/Financial_crisis_of_2007%E2%80%9308" class="mw-redirect" title="Financial crisis of 2007–08">Global Financial Crisis</a> unexpectedly starting in 2007, revenues quickly and significantly declined and the underlying structural deficit was exposed and exacerbated, which then had to be dealt with by later governments.<sup id="cite_ref-abc-howardrudd_14-1" class="reference"><a href="#cite_note-abc-howardrudd-14"><span class="cite-bracket">[</span>14<span class="cite-bracket">]</span></a></sup><sup id="cite_ref-aus-defland_15-0" class="reference"><a href="#cite_note-aus-defland-15"><span class="cite-bracket">[</span>15<span class="cite-bracket">]</span></a></sup> By 2008–2009 when the budget had a headline deficit of $32 billion, the structural deficit was out to around $50 billion.<sup id="cite_ref-smh-budhow_13-2" class="reference"><a href="#cite_note-smh-budhow-13"><span class="cite-bracket">[</span>13<span class="cite-bracket">]</span></a></sup> In 2013 it was estimated the structural deficit remained at about $40 billion, or 2.5% of GDP.<sup id="cite_ref-abc-howardrudd_14-2" class="reference"><a href="#cite_note-abc-howardrudd-14"><span class="cite-bracket">[</span>14<span class="cite-bracket">]</span></a></sup> </p> <div class="mw-heading mw-heading3"><h3 id="Criticism">Criticism</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Deficit_spending&action=edit&section=15" title="Edit section: Criticism"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p><a href="/wiki/Economist" title="Economist">Economist</a> Chris Dillow has questioned the distinction between cyclical and structural deficits,<sup id="cite_ref-ftic-myth_16-0" class="reference"><a href="#cite_note-ftic-myth-16"><span class="cite-bracket">[</span>16<span class="cite-bracket">]</span></a></sup> and this has received support from other leading economists. He contends that there are too many variables involved to allow a clear distinction to be made, especially when dealing with current circumstances rather than retrospectively, and suggests that the concept of structural deficits may be used more for <a href="/wiki/Political" class="mw-redirect" title="Political">political</a> purposes than analytical purposes. The piece largely centred on the UK Labour government 1997–2010 of which Chris Dillow was a strong supporter and criticism that they ran a large structural deficit. Economic representatives of that government acknowledge that, unbeknownst to them at the time, they were running a structural deficit.<sup id="cite_ref-17" class="reference"><a href="#cite_note-17"><span class="cite-bracket">[</span>17<span class="cite-bracket">]</span></a></sup> Economist and Professor Bill Mitchell has also questioned the misuse of the term 'structural deficit', particularly in the Australian context.<sup id="cite_ref-18" class="reference"><a href="#cite_note-18"><span class="cite-bracket">[</span>18<span class="cite-bracket">]</span></a></sup> </p><p><a href="/wiki/Martin_Wolf" title="Martin Wolf">Martin Wolf</a> argues that nobody knows what the structural or cyclically adjusted balance is, and that it is least knowable precisely when such knowledge is most essential, namely, when the economy is experiencing a boom. He provides two examples of widely divergent IMF estimates of the average structural fiscal balance of Ireland and Spain for the period 2000–2007. The estimates were made in 2008 and in 2012 and Wolf stresses that they were post-fact estimates and not predictions. Specifically, the IMF declared in 2008 that Ireland had run an average structural surplus of 1.3% of GDP per year between 2000 and 2007, and Spain had an average structural surplus of 0.5% of GDP per year over the same period. Four years later, the IMF decided that, for this same 8-year period, Ireland's annual average structural balance was four percentage points worse than it had thought in April 2008, estimating that Ireland had been running an average structural fiscal deficit of 2.7% of GDP. For Spain, the 2012 IMF estimate differed by 1.7 percentage points, estimating this time that Spain had been running and average structural fiscal deficit of 1.2% of GDP in the years 2000–2007.<sup id="cite_ref-19" class="reference"><a href="#cite_note-19"><span class="cite-bracket">[</span>19<span class="cite-bracket">]</span></a></sup> </p><p>Bruce Yandle writing for <i><a href="/wiki/Reason_(magazine)" title="Reason (magazine)">Reason</a></i>, stated in 2022 as a result of rising inflation that, "[It would be prudent to] Blame Washington, Not Moscow, for Surging Inflation; Few politicians are willing to admit deficit spending is the larger cause."<sup id="cite_ref-Blame_Washington,_Not_Moscow,_for_Surging_Inflation_–_Reason_–_Bruce_Yandle_20-0" class="reference"><a href="#cite_note-Blame_Washington,_Not_Moscow,_for_Surging_Inflation_–_Reason_–_Bruce_Yandle-20"><span class="cite-bracket">[</span>20<span class="cite-bracket">]</span></a></sup> </p> <div class="mw-heading mw-heading2"><h2 id="See_also">See also</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Deficit_spending&action=edit&section=16" title="Edit section: See also"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <style data-mw-deduplicate="TemplateStyles:r1235681985">.mw-parser-output .side-box{margin:4px 0;box-sizing:border-box;border:1px solid #aaa;font-size:88%;line-height:1.25em;background-color:var(--background-color-interactive-subtle,#f8f9fa);display:flow-root}.mw-parser-output .side-box-abovebelow,.mw-parser-output .side-box-text{padding:0.25em 0.9em}.mw-parser-output .side-box-image{padding:2px 0 2px 0.9em;text-align:center}.mw-parser-output .side-box-imageright{padding:2px 0.9em 2px 0;text-align:center}@media(min-width:500px){.mw-parser-output .side-box-flex{display:flex;align-items:center}.mw-parser-output .side-box-text{flex:1;min-width:0}}@media(min-width:720px){.mw-parser-output .side-box{width:238px}.mw-parser-output .side-box-right{clear:right;float:right;margin-left:1em}.mw-parser-output .side-box-left{margin-right:1em}}</style><style data-mw-deduplicate="TemplateStyles:r1237033735">@media print{body.ns-0 .mw-parser-output .sistersitebox{display:none!important}}@media screen{html.skin-theme-clientpref-night .mw-parser-output .sistersitebox img[src*="Wiktionary-logo-en-v2.svg"]{background-color:white}}@media screen and (prefers-color-scheme:dark){html.skin-theme-clientpref-os .mw-parser-output .sistersitebox img[src*="Wiktionary-logo-en-v2.svg"]{background-color:white}}</style><div class="side-box side-box-right plainlinks sistersitebox"><style data-mw-deduplicate="TemplateStyles:r1126788409">.mw-parser-output .plainlist ol,.mw-parser-output .plainlist ul{line-height:inherit;list-style:none;margin:0;padding:0}.mw-parser-output .plainlist ol li,.mw-parser-output .plainlist ul li{margin-bottom:0}</style> <div class="side-box-flex"> <div class="side-box-image"><span class="noviewer" typeof="mw:File"><a href="/wiki/File:Commons-logo.svg" class="mw-file-description"><img alt="" src="//upload.wikimedia.org/wikipedia/en/thumb/4/4a/Commons-logo.svg/30px-Commons-logo.svg.png" decoding="async" width="30" height="40" class="mw-file-element" srcset="//upload.wikimedia.org/wikipedia/en/thumb/4/4a/Commons-logo.svg/45px-Commons-logo.svg.png 1.5x, //upload.wikimedia.org/wikipedia/en/thumb/4/4a/Commons-logo.svg/59px-Commons-logo.svg.png 2x" data-file-width="1024" data-file-height="1376" /></a></span></div> <div class="side-box-text plainlist">Wikimedia Commons has media related to <span style="font-weight: bold; font-style: italic;"><a href="https://commons.wikimedia.org/wiki/Category:Public_deficit" class="extiw" title="commons:Category:Public deficit">Public deficit</a></span>.</div></div> </div> <ul><li><a href="/wiki/Inflation" title="Inflation">Inflation</a></li> <li><a href="/wiki/Functional_finance" title="Functional finance">Functional finance</a></li> <li><a href="/wiki/Deficit_(disambiguation)" class="mw-redirect mw-disambig" title="Deficit (disambiguation)">Deficit (disambiguation)</a></li> <li><a href="/wiki/Public_debt" class="mw-redirect" title="Public debt">Public debt</a></li> <li><a href="/wiki/Balanced_Budget_Amendment" class="mw-redirect" title="Balanced Budget Amendment">Balanced Budget Amendment</a></li> <li><a href="/wiki/Keynesian_economics" title="Keynesian economics">Keynesian economics</a></li> <li><a href="/wiki/Fiscal_policy" title="Fiscal policy">Fiscal policy</a></li></ul> <div class="mw-heading mw-heading2"><h2 id="References">References</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Deficit_spending&action=edit&section=17" title="Edit section: References"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <style data-mw-deduplicate="TemplateStyles:r1239543626">.mw-parser-output .reflist{margin-bottom:0.5em;list-style-type:decimal}@media screen{.mw-parser-output .reflist{font-size:90%}}.mw-parser-output .reflist .references{font-size:100%;margin-bottom:0;list-style-type:inherit}.mw-parser-output .reflist-columns-2{column-width:30em}.mw-parser-output .reflist-columns-3{column-width:25em}.mw-parser-output .reflist-columns{margin-top:0.3em}.mw-parser-output .reflist-columns ol{margin-top:0}.mw-parser-output .reflist-columns li{page-break-inside:avoid;break-inside:avoid-column}.mw-parser-output .reflist-upper-alpha{list-style-type:upper-alpha}.mw-parser-output .reflist-upper-roman{list-style-type:upper-roman}.mw-parser-output .reflist-lower-alpha{list-style-type:lower-alpha}.mw-parser-output .reflist-lower-greek{list-style-type:lower-greek}.mw-parser-output .reflist-lower-roman{list-style-type:lower-roman}</style><div class="reflist"> <div class="mw-references-wrap mw-references-columns"><ol class="references"> <li id="cite_note-1"><span class="mw-cite-backlink"><b><a href="#cite_ref-1">^</a></b></span> <span class="reference-text"><style data-mw-deduplicate="TemplateStyles:r1238218222">.mw-parser-output cite.citation{font-style:inherit;word-wrap:break-word}.mw-parser-output .citation q{quotes:"\"""\"""'""'"}.mw-parser-output .citation:target{background-color:rgba(0,127,255,0.133)}.mw-parser-output .id-lock-free.id-lock-free a{background:url("//upload.wikimedia.org/wikipedia/commons/6/65/Lock-green.svg")right 0.1em center/9px no-repeat}.mw-parser-output .id-lock-limited.id-lock-limited a,.mw-parser-output .id-lock-registration.id-lock-registration a{background:url("//upload.wikimedia.org/wikipedia/commons/d/d6/Lock-gray-alt-2.svg")right 0.1em center/9px no-repeat}.mw-parser-output .id-lock-subscription.id-lock-subscription a{background:url("//upload.wikimedia.org/wikipedia/commons/a/aa/Lock-red-alt-2.svg")right 0.1em center/9px no-repeat}.mw-parser-output .cs1-ws-icon a{background:url("//upload.wikimedia.org/wikipedia/commons/4/4c/Wikisource-logo.svg")right 0.1em center/12px no-repeat}body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .id-lock-free a,body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .id-lock-limited a,body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .id-lock-registration a,body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .id-lock-subscription a,body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .cs1-ws-icon a{background-size:contain;padding:0 1em 0 0}.mw-parser-output .cs1-code{color:inherit;background:inherit;border:none;padding:inherit}.mw-parser-output .cs1-hidden-error{display:none;color:var(--color-error,#d33)}.mw-parser-output .cs1-visible-error{color:var(--color-error,#d33)}.mw-parser-output .cs1-maint{display:none;color:#085;margin-left:0.3em}.mw-parser-output .cs1-kern-left{padding-left:0.2em}.mw-parser-output .cs1-kern-right{padding-right:0.2em}.mw-parser-output .citation .mw-selflink{font-weight:inherit}@media screen{.mw-parser-output .cs1-format{font-size:95%}html.skin-theme-clientpref-night .mw-parser-output .cs1-maint{color:#18911f}}@media screen and (prefers-color-scheme:dark){html.skin-theme-clientpref-os .mw-parser-output .cs1-maint{color:#18911f}}</style><cite id="CITEREFBrown-CollierCollier1995" class="citation journal cs1">Brown-Collier, Elba K.; Collier, Bruce E. (March 1995). <a rel="nofollow" class="external text" href="http://www.tandfonline.com/doi/full/10.1080/01603477.1995.11490034">"What Keynes Really Said about Deficit Spending"</a>. <i>Journal of Post Keynesian Economics</i>. <b>17</b> (3): <span class="nowrap">341–</span>355. <a href="/wiki/Doi_(identifier)" class="mw-redirect" title="Doi (identifier)">doi</a>:<a rel="nofollow" class="external text" href="https://doi.org/10.1080%2F01603477.1995.11490034">10.1080/01603477.1995.11490034</a>. <a href="/wiki/ISSN_(identifier)" class="mw-redirect" title="ISSN (identifier)">ISSN</a> <a rel="nofollow" class="external text" href="https://search.worldcat.org/issn/0160-3477">0160-3477</a>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=article&rft.jtitle=Journal+of+Post+Keynesian+Economics&rft.atitle=What+Keynes+Really+Said+about+Deficit+Spending&rft.volume=17&rft.issue=3&rft.pages=%3Cspan+class%3D%22nowrap%22%3E341-%3C%2Fspan%3E355&rft.date=1995-03&rft_id=info%3Adoi%2F10.1080%2F01603477.1995.11490034&rft.issn=0160-3477&rft.aulast=Brown-Collier&rft.aufirst=Elba+K.&rft.au=Collier%2C+Bruce+E.&rft_id=http%3A%2F%2Fwww.tandfonline.com%2Fdoi%2Ffull%2F10.1080%2F01603477.1995.11490034&rfr_id=info%3Asid%2Fen.wikipedia.org%3ADeficit+spending" class="Z3988"></span></span> </li> <li id="cite_note-2"><span class="mw-cite-backlink"><b><a href="#cite_ref-2">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222" /><cite id="CITEREFNiederjohn2011" class="citation book cs1">Niederjohn, M. Scoot (2011). Schug, Mark C.; Wood, William C. (eds.). <i>Teaching economics in troubled times: theory and practice for secondary social studies, Chapter 2 John Maynard Keynes: Dead But Not Forgotten</i>. New York: Routledge. <a href="/wiki/ISBN_(identifier)" class="mw-redirect" title="ISBN (identifier)">ISBN</a> <a href="/wiki/Special:BookSources/978-0-415-87771-8" title="Special:BookSources/978-0-415-87771-8"><bdi>978-0-415-87771-8</bdi></a>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Abook&rft.genre=book&rft.btitle=Teaching+economics+in+troubled+times%3A+theory+and+practice+for+secondary+social+studies%2C+Chapter+2+John+Maynard+Keynes%3A+Dead+But+Not+Forgotten&rft.place=New+York&rft.pub=Routledge&rft.date=2011&rft.isbn=978-0-415-87771-8&rft.aulast=Niederjohn&rft.aufirst=M.+Scoot&rfr_id=info%3Asid%2Fen.wikipedia.org%3ADeficit+spending" class="Z3988"></span></span> </li> <li id="cite_note-3"><span class="mw-cite-backlink"><b><a href="#cite_ref-3">^</a></b></span> <span class="reference-text">In "<a rel="nofollow" class="external text" href="https://krugman.blogs.nytimes.com/2010/02/16/britains-deficit/">Britain’s Deficit</a>", February 16, 2010, <a href="/wiki/Paul_Krugman" title="Paul Krugman">Paul Krugman</a> cites two opposing groups of economists, one arguing that Britain should cut its deficit immediately, the other arguing that the deficit provides useful or necessary fiscal stimulus.</span> </li> <li id="cite_note-4"><span class="mw-cite-backlink"><b><a href="#cite_ref-4">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222" /><cite class="citation web cs1"><a rel="nofollow" class="external text" href="http://www.columbia.edu/dlc/wp/econ/vickrey.html">"Vickrey, William. 1996. 15 Fatal Fallacies of Financial Fundamentalism"</a>. <i>www.columbia.edu</i>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=unknown&rft.jtitle=www.columbia.edu&rft.atitle=Vickrey%2C+William.+1996.+15+Fatal+Fallacies+of+Financial+Fundamentalism&rft_id=http%3A%2F%2Fwww.columbia.edu%2Fdlc%2Fwp%2Fecon%2Fvickrey.html&rfr_id=info%3Asid%2Fen.wikipedia.org%3ADeficit+spending" class="Z3988"></span></span> </li> <li id="cite_note-5"><span class="mw-cite-backlink"><b><a href="#cite_ref-5">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222" /><cite class="citation web cs1"><a rel="nofollow" class="external text" href="https://web.archive.org/web/20111012000910/http://prospect.org/csnc/blogs/beat_the_press_archive?month=11&year=2008&base_name=mankiw_promulgates_confusion_o">"Beat the Press"</a>. <i>www.prospect.org</i>. Archived from <a rel="nofollow" class="external text" href="http://www.prospect.org/csnc/blogs/beat_the_press_archive?month=11&year=2008&base_name=mankiw_promulgates_confusion_o">the original</a> on October 12, 2011<span class="reference-accessdate">. Retrieved <span class="nowrap">September 18,</span> 2010</span>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=unknown&rft.jtitle=www.prospect.org&rft.atitle=Beat+the+Press&rft_id=http%3A%2F%2Fwww.prospect.org%2Fcsnc%2Fblogs%2Fbeat_the_press_archive%3Fmonth%3D11%26year%3D2008%26base_name%3Dmankiw_promulgates_confusion_o&rfr_id=info%3Asid%2Fen.wikipedia.org%3ADeficit+spending" class="Z3988"></span></span> </li> <li id="cite_note-6"><span class="mw-cite-backlink"><b><a href="#cite_ref-6">^</a></b></span> <span class="reference-text">James Rickards, Currency Wars</span> </li> <li id="cite_note-7"><span class="mw-cite-backlink"><b><a href="#cite_ref-7">^</a></b></span> <span class="reference-text"><a rel="nofollow" class="external text" href="http://www.newdeal20.org/?p=7342">Spain and the EU: Deficit Terrorism in Action</a>, 01/8/2010, New Deal 2.0, Marshall Auerback</span> </li> <li id="cite_note-8"><span class="mw-cite-backlink"><b><a href="#cite_ref-8">^</a></b></span> <span class="reference-text">See references at <a href="/wiki/Chartalism" title="Chartalism">Chartalism</a> for the influence on Keynes.</span> </li> <li id="cite_note-9"><span class="mw-cite-backlink"><b><a href="#cite_ref-9">^</a></b></span> <span class="reference-text">(<a href="#CITEREFVickrey1996">Vickrey 1996</a>, Fallacy 1)</span> </li> <li id="cite_note-Blondal2004-10"><span class="mw-cite-backlink"><b><a href="#cite_ref-Blondal2004_10-0">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222" /><cite id="CITEREFBlöndal2004" class="citation journal cs1">Blöndal, Jón (2004). <a rel="nofollow" class="external text" href="https://www.oecd.org/gov/budgeting/42187939.pdf">"Issues in Accrual Budgeting"</a> <span class="cs1-format">(PDF)</span>. <i>OECD Journal on Budgeting</i>. <b>4</b> (1): <span class="nowrap">103–</span>119. <a href="/wiki/ISSN_(identifier)" class="mw-redirect" title="ISSN (identifier)">ISSN</a> <a rel="nofollow" class="external text" href="https://search.worldcat.org/issn/1608-7143">1608-7143</a>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=article&rft.jtitle=OECD+Journal+on+Budgeting&rft.atitle=Issues+in+Accrual+Budgeting&rft.volume=4&rft.issue=1&rft.pages=%3Cspan+class%3D%22nowrap%22%3E103-%3C%2Fspan%3E119&rft.date=2004&rft.issn=1608-7143&rft.aulast=Bl%C3%B6ndal&rft.aufirst=J%C3%B3n&rft_id=https%3A%2F%2Fwww.oecd.org%2Fgov%2Fbudgeting%2F42187939.pdf&rfr_id=info%3Asid%2Fen.wikipedia.org%3ADeficit+spending" class="Z3988"></span></span> </li> <li id="cite_note-ftl-buscycle-11"><span class="mw-cite-backlink"><b><a href="#cite_ref-ftl-buscycle_11-0">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222" /><cite class="citation web cs1"><a rel="nofollow" class="external text" href="http://lexicon.ft.com/Term?term=business-cycle">"Business cycle"</a>. <i>Financial Times Lexicon</i>. <a href="/wiki/Financial_Times" title="Financial Times">The Financial Times Limited</a><span class="reference-accessdate">. Retrieved <span class="nowrap">May 19,</span> 2013</span>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=unknown&rft.jtitle=Financial+Times+Lexicon&rft.atitle=Business+cycle&rft_id=http%3A%2F%2Flexicon.ft.com%2FTerm%3Fterm%3Dbusiness-cycle&rfr_id=info%3Asid%2Fen.wikipedia.org%3ADeficit+spending" class="Z3988"></span></span> </li> <li id="cite_note-ftl-strucdef-12"><span class="mw-cite-backlink">^ <a href="#cite_ref-ftl-strucdef_12-0"><sup><i><b>a</b></i></sup></a> <a href="#cite_ref-ftl-strucdef_12-1"><sup><i><b>b</b></i></sup></a> <a href="#cite_ref-ftl-strucdef_12-2"><sup><i><b>c</b></i></sup></a> <a href="#cite_ref-ftl-strucdef_12-3"><sup><i><b>d</b></i></sup></a></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222" /><cite class="citation web cs1"><a rel="nofollow" class="external text" href="http://lexicon.ft.com/Term?term=structural-deficit">"Structural deficit"</a>. <i>Financial Times Lexicon</i>. <a href="/wiki/Financial_Times" title="Financial Times">The Financial Times Limited</a><span class="reference-accessdate">. Retrieved <span class="nowrap">May 19,</span> 2013</span>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=unknown&rft.jtitle=Financial+Times+Lexicon&rft.atitle=Structural+deficit&rft_id=http%3A%2F%2Flexicon.ft.com%2FTerm%3Fterm%3Dstructural-deficit&rfr_id=info%3Asid%2Fen.wikipedia.org%3ADeficit+spending" class="Z3988"></span></span> </li> <li id="cite_note-smh-budhow-13"><span class="mw-cite-backlink">^ <a href="#cite_ref-smh-budhow_13-0"><sup><i><b>a</b></i></sup></a> <a href="#cite_ref-smh-budhow_13-1"><sup><i><b>b</b></i></sup></a> <a href="#cite_ref-smh-budhow_13-2"><sup><i><b>c</b></i></sup></a></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222" /><cite id="CITEREFDavis2009" class="citation web cs1">Davis, Mark (May 14, 2009). <a rel="nofollow" class="external text" href="http://www.smh.com.au/business/outlook-began-faltering-in-the-howard-years-20090513-b3ef.html">"Outlook began faltering in the Howard years"</a>. <i><a href="/wiki/Sydney_Morning_Herald" class="mw-redirect" title="Sydney Morning Herald">Sydney Morning Herald</a></i>. <a href="/wiki/Fairfax_Media" title="Fairfax Media">Fairfax Media</a><span class="reference-accessdate">. Retrieved <span class="nowrap">May 20,</span> 2013</span>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=unknown&rft.jtitle=Sydney+Morning+Herald&rft.atitle=Outlook+began+faltering+in+the+Howard+years&rft.date=2009-05-14&rft.aulast=Davis&rft.aufirst=Mark&rft_id=http%3A%2F%2Fwww.smh.com.au%2Fbusiness%2Foutlook-began-faltering-in-the-howard-years-20090513-b3ef.html&rfr_id=info%3Asid%2Fen.wikipedia.org%3ADeficit+spending" class="Z3988"></span></span> </li> <li id="cite_note-abc-howardrudd-14"><span class="mw-cite-backlink">^ <a href="#cite_ref-abc-howardrudd_14-0"><sup><i><b>a</b></i></sup></a> <a href="#cite_ref-abc-howardrudd_14-1"><sup><i><b>b</b></i></sup></a> <a href="#cite_ref-abc-howardrudd_14-2"><sup><i><b>c</b></i></sup></a></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222" /><cite id="CITEREFJanda2013" class="citation web cs1">Janda, Michael (April 26, 2013). <a rel="nofollow" class="external text" href="http://www.abc.net.au/worldtoday/content/2013/s3745853.htm">"Howard and Rudd responsible for budget black hole: economist"</a>. <i><a href="/wiki/The_World_Today_(Australian_radio_program)" title="The World Today (Australian radio program)">The World Today</a></i>. <a href="/wiki/Australian_Broadcasting_Corporation" title="Australian Broadcasting Corporation">Australian Broadcasting Corporation</a><span class="reference-accessdate">. Retrieved <span class="nowrap">May 20,</span> 2013</span>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=unknown&rft.jtitle=The+World+Today&rft.atitle=Howard+and+Rudd+responsible+for+budget+black+hole%3A+economist&rft.date=2013-04-26&rft.aulast=Janda&rft.aufirst=Michael&rft_id=http%3A%2F%2Fwww.abc.net.au%2Fworldtoday%2Fcontent%2F2013%2Fs3745853.htm&rfr_id=info%3Asid%2Fen.wikipedia.org%3ADeficit+spending" class="Z3988"></span></span> </li> <li id="cite_note-aus-defland-15"><span class="mw-cite-backlink"><b><a href="#cite_ref-aus-defland_15-0">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222" /><cite id="CITEREFMegalogenis2009" class="citation web cs1">Megalogenis, George (September 12, 2009). <a rel="nofollow" class="external text" href="http://www.theaustralian.com.au/opinion/columnists/welcome-to-structural-deficit-land/story-e6frg7ex-1225772087943">"Welcome to structural deficit-land"</a>. <i><a href="/wiki/The_Australian" title="The Australian">The Australian</a></i>. <a href="/wiki/News_Limited" class="mw-redirect" title="News Limited">News Limited</a><span class="reference-accessdate">. Retrieved <span class="nowrap">May 20,</span> 2013</span>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=unknown&rft.jtitle=The+Australian&rft.atitle=Welcome+to+structural+deficit-land&rft.date=2009-09-12&rft.aulast=Megalogenis&rft.aufirst=George&rft_id=http%3A%2F%2Fwww.theaustralian.com.au%2Fopinion%2Fcolumnists%2Fwelcome-to-structural-deficit-land%2Fstory-e6frg7ex-1225772087943&rfr_id=info%3Asid%2Fen.wikipedia.org%3ADeficit+spending" class="Z3988"></span></span> </li> <li id="cite_note-ftic-myth-16"><span class="mw-cite-backlink"><b><a href="#cite_ref-ftic-myth_16-0">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222" /><cite id="CITEREFDillow2010" class="citation web cs1">Dillow, Chris (February 15, 2010). <a rel="nofollow" class="external text" href="https://web.archive.org/web/20140531163719/http://www.investorschronicle.co.uk/2012/01/25/comment/chris-dillow/the-myth-of-the-structural-deficit-kxaAou6Uxk3agiUtDUZEnI/article.html;jsessionid=A3610EF98F61FEE511F6E1D05D7697F5.mps-apr-02-8109">"The myth of the structural deficit"</a>. <i><a href="/wiki/Investors_Chronicle" title="Investors Chronicle">Investors Chronicle</a></i>. <a href="/wiki/Financial_Times" title="Financial Times">The Financial Times Limited</a>. Archived from <a rel="nofollow" class="external text" href="http://www.investorschronicle.co.uk/2012/01/25/comment/chris-dillow/the-myth-of-the-structural-deficit-kxaAou6Uxk3agiUtDUZEnI/article.html;jsessionid=A3610EF98F61FEE511F6E1D05D7697F5.mps-apr-02-8109">the original</a> on May 31, 2014<span class="reference-accessdate">. Retrieved <span class="nowrap">May 19,</span> 2013</span>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=unknown&rft.jtitle=Investors+Chronicle&rft.atitle=The+myth+of+the+structural+deficit&rft.date=2010-02-15&rft.aulast=Dillow&rft.aufirst=Chris&rft_id=http%3A%2F%2Fwww.investorschronicle.co.uk%2F2012%2F01%2F25%2Fcomment%2Fchris-dillow%2Fthe-myth-of-the-structural-deficit-kxaAou6Uxk3agiUtDUZEnI%2Farticle.html%3Bjsessionid%3DA3610EF98F61FEE511F6E1D05D7697F5.mps-apr-02-8109&rfr_id=info%3Asid%2Fen.wikipedia.org%3ADeficit+spending" class="Z3988"></span></span> </li> <li id="cite_note-17"><span class="mw-cite-backlink"><b><a href="#cite_ref-17">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222" /><cite id="CITEREFKirkup2012" class="citation web cs1">Kirkup, James (October 25, 2012). <a rel="nofollow" class="external text" href="https://www.telegraph.co.uk/news/politics/9633508/Ed-Balls-Labour-ran-a-structural-deficit-in-2007.html">"Ed Balls: Labour ran a structural deficit in 2007"</a> – via www.telegraph.co.uk.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Abook&rft.genre=unknown&rft.btitle=Ed+Balls%3A+Labour+ran+a+structural+deficit+in+2007&rft.date=2012-10-25&rft.aulast=Kirkup&rft.aufirst=James&rft_id=https%3A%2F%2Fwww.telegraph.co.uk%2Fnews%2Fpolitics%2F9633508%2FEd-Balls-Labour-ran-a-structural-deficit-in-2007.html&rfr_id=info%3Asid%2Fen.wikipedia.org%3ADeficit+spending" class="Z3988"></span></span> </li> <li id="cite_note-18"><span class="mw-cite-backlink"><b><a href="#cite_ref-18">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222" /><cite class="citation web cs1"><a rel="nofollow" class="external text" href="http://bilbo.economicoutlook.net/blog/?p=2326">"Structural deficits – the great con job!"</a>. <i>economicoutlook.net</i>. May 15, 2009.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=unknown&rft.jtitle=economicoutlook.net&rft.atitle=Structural+deficits+%E2%80%93+the+great+con+job%21&rft.date=2009-05-15&rft_id=http%3A%2F%2Fbilbo.economicoutlook.net%2Fblog%2F%3Fp%3D2326&rfr_id=info%3Asid%2Fen.wikipedia.org%3ADeficit+spending" class="Z3988"></span></span> </li> <li id="cite_note-19"><span class="mw-cite-backlink"><b><a href="#cite_ref-19">^</a></b></span> <span class="reference-text"><i>The Shifts and the Shocks: What We’ve Learned—and Have Still to Learn—from the Financial Crisis</i>, pp. 76–77, Penguin Press 2014, <link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222" /><a href="/wiki/ISBN_(identifier)" class="mw-redirect" title="ISBN (identifier)">ISBN</a> <a href="/wiki/Special:BookSources/978-1594205446" title="Special:BookSources/978-1594205446">978-1594205446</a></span> </li> <li id="cite_note-Blame_Washington,_Not_Moscow,_for_Surging_Inflation_–_Reason_–_Bruce_Yandle-20"><span class="mw-cite-backlink"><b><a href="#cite_ref-Blame_Washington,_Not_Moscow,_for_Surging_Inflation_–_Reason_–_Bruce_Yandle_20-0">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222" /><cite id="CITEREFYandle2022" class="citation web cs1">Yandle, Bruce (March 11, 2022). <a rel="nofollow" class="external text" href="https://reason.com/2022/03/11/blame-washington-not-moscow-for-surging-inflation/">"Blame Washington, Not Moscow, for Surging Inflation"</a>. <i>reason.com</i>. Reason<span class="reference-accessdate">. Retrieved <span class="nowrap">March 17,</span> 2022</span>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=unknown&rft.jtitle=reason.com&rft.atitle=Blame+Washington%2C+Not+Moscow%2C+for+Surging+Inflation&rft.date=2022-03-11&rft.aulast=Yandle&rft.aufirst=Bruce&rft_id=https%3A%2F%2Freason.com%2F2022%2F03%2F11%2Fblame-washington-not-moscow-for-surging-inflation%2F&rfr_id=info%3Asid%2Fen.wikipedia.org%3ADeficit+spending" class="Z3988"></span></span> </li> </ol></div></div> <div class="mw-heading mw-heading2"><h2 id="Bibliography">Bibliography</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Deficit_spending&action=edit&section=18" title="Edit section: Bibliography"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <ul><li><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222" /><cite id="CITEREFWilliam_J._Baumol,_Alan_S._Blinder2005" class="citation book cs1">William J. Baumol, Alan S. Blinder (2005). <i>Economics: Principles and Policy</i>. Thomson South-Western. <a href="/wiki/ISBN_(identifier)" class="mw-redirect" title="ISBN (identifier)">ISBN</a> <a href="/wiki/Special:BookSources/0-324-22113-4" title="Special:BookSources/0-324-22113-4"><bdi>0-324-22113-4</bdi></a>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Abook&rft.genre=book&rft.btitle=Economics%3A+Principles+and+Policy&rft.pub=Thomson+South-Western&rft.date=2005&rft.isbn=0-324-22113-4&rft.au=William+J.+Baumol%2C+Alan+S.+Blinder&rfr_id=info%3Asid%2Fen.wikipedia.org%3ADeficit+spending" class="Z3988"></span></li> <li>Mitchell, Bill: <a rel="nofollow" class="external text" href="http://bilbo.economicoutlook.net/blog/?p=332">Deficit spending 101 – Part 1</a>, <a rel="nofollow" class="external text" href="http://bilbo.economicoutlook.net/blog/?p=352">Part 2</a>, <a rel="nofollow" class="external text" href="http://bilbo.economicoutlook.net/blog/?p=381">Part 3</a>; <a href="/wiki/Neo-Chartalism" class="mw-redirect" title="Neo-Chartalism">Neo-Chartalist</a> (Modern Monetary Theory) perspective on deficit spending</li> <li><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222" /><cite id="CITEREFVickrey1996" class="citation web cs1"><a href="/wiki/William_Vickrey" title="William Vickrey">Vickrey, William</a> (October 5, 1996). <a rel="nofollow" class="external text" href="http://www.columbia.edu/dlc/wp/econ/vickrey.html">"Fifteen Fatal Fallacies of Financial Fundamentalism: A Disquisition on Demand Side Economics"</a>. Paper was written one week before the author's death, three days before he received the <a href="/wiki/Nobel_Memorial_Prize_in_Economics" class="mw-redirect" title="Nobel Memorial Prize in Economics">Nobel Memorial Prize in Economics</a>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Abook&rft.genre=unknown&rft.btitle=Fifteen+Fatal+Fallacies+of+Financial+Fundamentalism%3A+A+Disquisition+on+Demand+Side+Economics&rft.date=1996-10-05&rft.aulast=Vickrey&rft.aufirst=William&rft_id=http%3A%2F%2Fwww.columbia.edu%2Fdlc%2Fwp%2Fecon%2Fvickrey.html&rfr_id=info%3Asid%2Fen.wikipedia.org%3ADeficit+spending" class="Z3988"></span><span class="cs1-maint citation-comment"><code class="cs1-code">{{<a href="/wiki/Template:Cite_web" title="Template:Cite web">cite web</a>}}</code>: CS1 maint: postscript (<a href="/wiki/Category:CS1_maint:_postscript" title="Category:CS1 maint: postscript">link</a>)</span></li> <li>McGregor, Michael A., Driscoll, Paul D., McDowell, Walter (2010) “Head’s Broadcasting in America: A Survey of Electronic Media”. Boston, Massachusetts: Allyn & Bacon p. 180.</li></ul> <div class="mw-heading mw-heading2"><h2 id="Further_reading">Further reading</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=Deficit_spending&action=edit&section=19" title="Edit section: Further reading"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <ul><li><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222" /><cite id="CITEREFSeater2008" class="citation encyclopaedia cs1">Seater, John J. (2008). <a rel="nofollow" class="external text" href="http://www.econlib.org/library/Enc/GovernmentDebtandDeficits.html">"Government Debt and Deficits"</a>. In <a href="/wiki/David_R._Henderson" title="David R. Henderson">David R. Henderson</a> (ed.). <i><a href="/wiki/Concise_Encyclopedia_of_Economics" class="mw-redirect" title="Concise Encyclopedia of Economics">Concise Encyclopedia of Economics</a></i> (2nd ed.). Indianapolis: <a href="/wiki/Library_of_Economics_and_Liberty" class="mw-redirect" title="Library of Economics and Liberty">Library of Economics and Liberty</a>. <a href="/wiki/ISBN_(identifier)" class="mw-redirect" title="ISBN (identifier)">ISBN</a> <a href="/wiki/Special:BookSources/978-0865976658" title="Special:BookSources/978-0865976658"><bdi>978-0865976658</bdi></a>. <a href="/wiki/OCLC_(identifier)" class="mw-redirect" title="OCLC (identifier)">OCLC</a> <a rel="nofollow" class="external text" href="https://search.worldcat.org/oclc/237794267">237794267</a>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Abook&rft.genre=bookitem&rft.atitle=Government+Debt+and+Deficits&rft.btitle=Concise+Encyclopedia+of+Economics&rft.place=Indianapolis&rft.edition=2nd&rft.pub=Library+of+Economics+and+Liberty&rft.date=2008&rft_id=info%3Aoclcnum%2F237794267&rft.isbn=978-0865976658&rft.aulast=Seater&rft.aufirst=John+J.&rft_id=http%3A%2F%2Fwww.econlib.org%2Flibrary%2FEnc%2FGovernmentDebtandDeficits.html&rfr_id=info%3Asid%2Fen.wikipedia.org%3ADeficit+spending" class="Z3988"></span></li> <li><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222" /><cite id="CITEREFHiggs2008" class="citation encyclopaedia cs1">Higgs, Robert (2008). <a rel="nofollow" class="external text" href="http://www.econlib.org/library/Enc/GovernmentGrowth.html">"www.econlib.org/library/Enc/GovernmentGrowth.html"</a>. In <a href="/wiki/David_R._Henderson" title="David R. Henderson">David R. Henderson</a> (ed.). <i><a href="/wiki/Concise_Encyclopedia_of_Economics" class="mw-redirect" title="Concise Encyclopedia of Economics">Concise Encyclopedia of Economics</a></i> (2nd ed.). Indianapolis: <a href="/wiki/Library_of_Economics_and_Liberty" class="mw-redirect" title="Library of Economics and Liberty">Library of Economics and Liberty</a>. <a href="/wiki/ISBN_(identifier)" class="mw-redirect" title="ISBN (identifier)">ISBN</a> <a href="/wiki/Special:BookSources/978-0865976658" title="Special:BookSources/978-0865976658"><bdi>978-0865976658</bdi></a>. <a href="/wiki/OCLC_(identifier)" class="mw-redirect" title="OCLC (identifier)">OCLC</a> <a rel="nofollow" class="external text" href="https://search.worldcat.org/oclc/237794267">237794267</a>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Abook&rft.genre=bookitem&rft.atitle=www.econlib.org%2Flibrary%2FEnc%2FGovernmentGrowth.html&rft.btitle=Concise+Encyclopedia+of+Economics&rft.place=Indianapolis&rft.edition=2nd&rft.pub=Library+of+Economics+and+Liberty&rft.date=2008&rft_id=info%3Aoclcnum%2F237794267&rft.isbn=978-0865976658&rft.aulast=Higgs&rft.aufirst=Robert&rft_id=http%3A%2F%2Fwww.econlib.org%2Flibrary%2FEnc%2FGovernmentGrowth.html&rfr_id=info%3Asid%2Fen.wikipedia.org%3ADeficit+spending" class="Z3988"></span></li></ul> <div class="navbox-styles"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374" /><style data-mw-deduplicate="TemplateStyles:r1236075235">.mw-parser-output .navbox{box-sizing:border-box;border:1px solid #a2a9b1;width:100%;clear:both;font-size:88%;text-align:center;padding:1px;margin:1em auto 0}.mw-parser-output .navbox .navbox{margin-top:0}.mw-parser-output .navbox+.navbox,.mw-parser-output .navbox+.navbox-styles+.navbox{margin-top:-1px}.mw-parser-output .navbox-inner,.mw-parser-output .navbox-subgroup{width:100%}.mw-parser-output .navbox-group,.mw-parser-output .navbox-title,.mw-parser-output .navbox-abovebelow{padding:0.25em 1em;line-height:1.5em;text-align:center}.mw-parser-output .navbox-group{white-space:nowrap;text-align:right}.mw-parser-output .navbox,.mw-parser-output .navbox-subgroup{background-color:#fdfdfd}.mw-parser-output .navbox-list{line-height:1.5em;border-color:#fdfdfd}.mw-parser-output .navbox-list-with-group{text-align:left;border-left-width:2px;border-left-style:solid}.mw-parser-output tr+tr>.navbox-abovebelow,.mw-parser-output tr+tr>.navbox-group,.mw-parser-output tr+tr>.navbox-image,.mw-parser-output tr+tr>.navbox-list{border-top:2px solid #fdfdfd}.mw-parser-output .navbox-title{background-color:#ccf}.mw-parser-output .navbox-abovebelow,.mw-parser-output .navbox-group,.mw-parser-output .navbox-subgroup .navbox-title{background-color:#ddf}.mw-parser-output .navbox-subgroup .navbox-group,.mw-parser-output .navbox-subgroup .navbox-abovebelow{background-color:#e6e6ff}.mw-parser-output .navbox-even{background-color:#f7f7f7}.mw-parser-output .navbox-odd{background-color:transparent}.mw-parser-output .navbox .hlist td dl,.mw-parser-output .navbox .hlist td ol,.mw-parser-output .navbox .hlist td ul,.mw-parser-output .navbox td.hlist dl,.mw-parser-output .navbox td.hlist ol,.mw-parser-output .navbox td.hlist ul{padding:0.125em 0}.mw-parser-output .navbox .navbar{display:block;font-size:100%}.mw-parser-output .navbox-title .navbar{float:left;text-align:left;margin-right:0.5em}body.skin--responsive .mw-parser-output .navbox-image img{max-width:none!important}@media print{body.ns-0 .mw-parser-output .navbox{display:none!important}}</style></div><div role="navigation" class="navbox authority-control" aria-label="Navbox582" style="padding:3px"><table class="nowraplinks hlist navbox-inner" style="border-spacing:0;background:transparent;color:inherit"><tbody><tr><th scope="row" class="navbox-group" style="width:1%"><a href="/wiki/Help:Authority_control" title="Help:Authority control">Authority control databases</a>: National <span class="mw-valign-text-top noprint" typeof="mw:File/Frameless"><a href="https://www.wikidata.org/wiki/Q17010135#identifiers" title="Edit this at Wikidata"><img alt="Edit this at Wikidata" src="//upload.wikimedia.org/wikipedia/en/thumb/8/8a/OOjs_UI_icon_edit-ltr-progressive.svg/10px-OOjs_UI_icon_edit-ltr-progressive.svg.png" decoding="async" width="10" height="10" class="mw-file-element" srcset="//upload.wikimedia.org/wikipedia/en/thumb/8/8a/OOjs_UI_icon_edit-ltr-progressive.svg/15px-OOjs_UI_icon_edit-ltr-progressive.svg.png 1.5x, //upload.wikimedia.org/wikipedia/en/thumb/8/8a/OOjs_UI_icon_edit-ltr-progressive.svg/20px-OOjs_UI_icon_edit-ltr-progressive.svg.png 2x" data-file-width="20" data-file-height="20" /></a></span></th><td class="navbox-list-with-group navbox-list navbox-odd" style="width:100%;padding:0"><div style="padding:0 0.25em"><ul><li><span class="uid"><a rel="nofollow" class="external text" href="https://d-nb.info/gnd/4011279-2">Germany</a></span></li><li><span class="uid"><a rel="nofollow" class="external text" href="https://id.loc.gov/authorities/sh85036456">United States</a></span></li><li><span class="uid"><a rel="nofollow" class="external text" href="https://www.nli.org.il/en/authorities/987007545608605171">Israel</a></span></li></ul></div></td></tr></tbody></table></div>    </div><noscript><img src="https://login.wikimedia.org/wiki/Special:CentralAutoLogin/start?useformat=desktop&type=1x1&usesul3=0" alt="" width="1" height="1" style="border: none; position: absolute;"></noscript> <div class="printfooter" data-nosnippet="">Retrieved from "<a dir="ltr" href="https://en.wikipedia.org/w/index.php?title=Deficit_spending&oldid=1275567036">https://en.wikipedia.org/w/index.php?title=Deficit_spending&oldid=1275567036</a>"</div></div> <div id="catlinks" class="catlinks" data-mw="interface"><div id="mw-normal-catlinks" class="mw-normal-catlinks"><a href="/wiki/Help:Category" title="Help:Category">Categories</a>: <ul><li><a href="/wiki/Category:Deficit_spending" title="Category:Deficit spending">Deficit spending</a></li><li><a href="/wiki/Category:Government_spending" title="Category:Government spending">Government spending</a></li><li><a href="/wiki/Category:Keynesian_economics" title="Category:Keynesian economics">Keynesian economics</a></li></ul></div><div id="mw-hidden-catlinks" class="mw-hidden-catlinks mw-hidden-cats-hidden">Hidden categories: <ul><li><a href="/wiki/Category:Articles_with_short_description" title="Category:Articles with short description">Articles with short description</a></li><li><a href="/wiki/Category:Short_description_matches_Wikidata" title="Category:Short description matches Wikidata">Short description matches Wikidata</a></li><li><a href="/wiki/Category:Articles_needing_additional_references_from_June_2023" title="Category:Articles needing additional references from June 2023">Articles needing additional references from June 2023</a></li><li><a href="/wiki/Category:All_articles_needing_additional_references" title="Category:All articles needing additional references">All articles needing additional references</a></li><li><a href="/wiki/Category:Use_mdy_dates_from_July_2024" title="Category:Use mdy dates from July 2024">Use mdy dates from July 2024</a></li><li><a href="/wiki/Category:All_articles_with_unsourced_statements" title="Category:All articles with unsourced statements">All articles with unsourced statements</a></li><li><a href="/wiki/Category:Articles_with_unsourced_statements_from_April_2014" title="Category:Articles with unsourced statements from April 2014">Articles with unsourced statements from April 2014</a></li><li><a href="/wiki/Category:Articles_with_unsourced_statements_from_May_2015" title="Category:Articles with unsourced statements from May 2015">Articles with unsourced statements from May 2015</a></li><li><a href="/wiki/Category:Commons_category_link_is_on_Wikidata" title="Category:Commons category link is on Wikidata">Commons category link is on Wikidata</a></li><li><a href="/wiki/Category:CS1_maint:_postscript" title="Category:CS1 maint: postscript">CS1 maint: postscript</a></li></ul></div></div> </div> </main> </div> <div class="mw-footer-container"> <footer id="footer" class="mw-footer" > <ul id="footer-info"> <li id="footer-info-lastmod"> This page was last edited on 13 February 2025, at 20:00<span class="anonymous-show"> (UTC)</span>.</li> <li id="footer-info-copyright">Text is available under the <a href="/wiki/Wikipedia:Text_of_the_Creative_Commons_Attribution-ShareAlike_4.0_International_License" title="Wikipedia:Text of the Creative Commons Attribution-ShareAlike 4.0 International License">Creative Commons Attribution-ShareAlike 4.0 License</a>; additional terms may apply. By using this site, you agree to the <a href="https://foundation.wikimedia.org/wiki/Special:MyLanguage/Policy:Terms_of_Use" class="extiw" title="foundation:Special:MyLanguage/Policy:Terms of Use">Terms of Use</a> and <a href="https://foundation.wikimedia.org/wiki/Special:MyLanguage/Policy:Privacy_policy" class="extiw" title="foundation:Special:MyLanguage/Policy:Privacy policy">Privacy Policy</a>. Wikipedia® is a registered trademark of the <a rel="nofollow" class="external text" href="https://wikimediafoundation.org/">Wikimedia Foundation, Inc.</a>, a non-profit organization.</li> </ul> <ul id="footer-places"> <li id="footer-places-privacy"><a href="https://foundation.wikimedia.org/wiki/Special:MyLanguage/Policy:Privacy_policy">Privacy policy</a></li> <li id="footer-places-about"><a href="/wiki/Wikipedia:About">About Wikipedia</a></li> <li id="footer-places-disclaimers"><a href="/wiki/Wikipedia:General_disclaimer">Disclaimers</a></li> <li id="footer-places-contact"><a href="//en.wikipedia.org/wiki/Wikipedia:Contact_us">Contact Wikipedia</a></li> <li id="footer-places-wm-codeofconduct"><a href="https://foundation.wikimedia.org/wiki/Special:MyLanguage/Policy:Universal_Code_of_Conduct">Code of Conduct</a></li> <li id="footer-places-developers"><a href="https://developer.wikimedia.org">Developers</a></li> <li id="footer-places-statslink"><a href="https://stats.wikimedia.org/#/en.wikipedia.org">Statistics</a></li> <li id="footer-places-cookiestatement"><a href="https://foundation.wikimedia.org/wiki/Special:MyLanguage/Policy:Cookie_statement">Cookie statement</a></li> <li id="footer-places-mobileview"><a href="//en.m.wikipedia.org/w/index.php?title=Deficit_spending&mobileaction=toggle_view_mobile" class="noprint stopMobileRedirectToggle">Mobile view</a></li> </ul> <ul id="footer-icons" class="noprint"> <li id="footer-copyrightico"><a href="https://wikimediafoundation.org/" class="cdx-button cdx-button--fake-button cdx-button--size-large cdx-button--fake-button--enabled"><picture><source media="(min-width: 500px)" srcset="/static/images/footer/wikimedia-button.svg" width="84" height="29"><img src="/static/images/footer/wikimedia.svg" width="25" height="25" alt="Wikimedia Foundation" lang="en" loading="lazy"></picture></a></li> <li id="footer-poweredbyico"><a href="https://www.mediawiki.org/" class="cdx-button cdx-button--fake-button cdx-button--size-large cdx-button--fake-button--enabled"><picture><source media="(min-width: 500px)" srcset="/w/resources/assets/poweredby_mediawiki.svg" width="88" height="31"><img src="/w/resources/assets/mediawiki_compact.svg" alt="Powered by MediaWiki" lang="en" width="25" height="25" loading="lazy"></picture></a></li> </ul> </footer> </div> </div> </div> <div class="vector-header-container vector-sticky-header-container"> <div id="vector-sticky-header" class="vector-sticky-header"> <div class="vector-sticky-header-start"> <div class="vector-sticky-header-icon-start vector-button-flush-left vector-button-flush-right" aria-hidden="true"> <button class="cdx-button cdx-button--weight-quiet cdx-button--icon-only vector-sticky-header-search-toggle" tabindex="-1" data-event-name="ui.vector-sticky-search-form.icon"><span class="vector-icon mw-ui-icon-search mw-ui-icon-wikimedia-search"></span> <span>Search</span> </button> </div> <div role="search" class="vector-search-box-vue vector-search-box-show-thumbnail vector-search-box"> <div class="vector-typeahead-search-container"> <div class="cdx-typeahead-search cdx-typeahead-search--show-thumbnail"> <form action="/w/index.php" id="vector-sticky-search-form" class="cdx-search-input cdx-search-input--has-end-button"> <div class="cdx-search-input__input-wrapper" data-search-loc="header-moved"> <div class="cdx-text-input cdx-text-input--has-start-icon"> <input class="cdx-text-input__input" type="search" name="search" placeholder="Search Wikipedia"> <span class="cdx-text-input__icon cdx-text-input__start-icon"></span> </div> <input type="hidden" name="title" value="Special:Search"> </div> <button class="cdx-button cdx-search-input__end-button">Search</button> </form> </div> </div> </div> <div class="vector-sticky-header-context-bar"> <nav aria-label="Contents" class="vector-toc-landmark"> <div id="vector-sticky-header-toc" class="vector-dropdown mw-portlet mw-portlet-sticky-header-toc vector-sticky-header-toc vector-button-flush-left" > <input type="checkbox" id="vector-sticky-header-toc-checkbox" role="button" aria-haspopup="true" data-event-name="ui.dropdown-vector-sticky-header-toc" class="vector-dropdown-checkbox " aria-label="Toggle the table of contents" > <label id="vector-sticky-header-toc-label" for="vector-sticky-header-toc-checkbox" class="vector-dropdown-label cdx-button cdx-button--fake-button cdx-button--fake-button--enabled cdx-button--weight-quiet cdx-button--icon-only " aria-hidden="true" ><span class="vector-icon mw-ui-icon-listBullet mw-ui-icon-wikimedia-listBullet"></span> <span class="vector-dropdown-label-text">Toggle the table of contents</span> </label> <div class="vector-dropdown-content"> <div id="vector-sticky-header-toc-unpinned-container" class="vector-unpinned-container"> </div> </div> </div> </nav> <div class="vector-sticky-header-context-bar-primary" aria-hidden="true" ><span class="mw-page-title-main">Deficit spending</span></div> </div> </div> <div class="vector-sticky-header-end" aria-hidden="true"> <div class="vector-sticky-header-icons"> <a href="#" class="cdx-button cdx-button--fake-button cdx-button--fake-button--enabled cdx-button--weight-quiet cdx-button--icon-only" id="ca-talk-sticky-header" tabindex="-1" data-event-name="talk-sticky-header"><span class="vector-icon mw-ui-icon-speechBubbles mw-ui-icon-wikimedia-speechBubbles"></span> <span></span> </a> <a href="#" class="cdx-button cdx-button--fake-button cdx-button--fake-button--enabled cdx-button--weight-quiet cdx-button--icon-only" id="ca-subject-sticky-header" tabindex="-1" data-event-name="subject-sticky-header"><span class="vector-icon mw-ui-icon-article mw-ui-icon-wikimedia-article"></span> <span></span> </a> <a href="#" class="cdx-button cdx-button--fake-button cdx-button--fake-button--enabled cdx-button--weight-quiet cdx-button--icon-only" id="ca-history-sticky-header" tabindex="-1" data-event-name="history-sticky-header"><span class="vector-icon mw-ui-icon-wikimedia-history mw-ui-icon-wikimedia-wikimedia-history"></span> <span></span> </a> <a href="#" class="cdx-button cdx-button--fake-button cdx-button--fake-button--enabled cdx-button--weight-quiet cdx-button--icon-only mw-watchlink" id="ca-watchstar-sticky-header" tabindex="-1" data-event-name="watch-sticky-header"><span class="vector-icon mw-ui-icon-wikimedia-star mw-ui-icon-wikimedia-wikimedia-star"></span> <span></span> </a> <a href="#" class="cdx-button cdx-button--fake-button cdx-button--fake-button--enabled cdx-button--weight-quiet cdx-button--icon-only" id="ca-edit-sticky-header" tabindex="-1" data-event-name="wikitext-edit-sticky-header"><span class="vector-icon mw-ui-icon-wikimedia-wikiText mw-ui-icon-wikimedia-wikimedia-wikiText"></span> <span></span> </a> <a href="#" class="cdx-button cdx-button--fake-button cdx-button--fake-button--enabled cdx-button--weight-quiet cdx-button--icon-only" id="ca-ve-edit-sticky-header" tabindex="-1" data-event-name="ve-edit-sticky-header"><span class="vector-icon mw-ui-icon-wikimedia-edit mw-ui-icon-wikimedia-wikimedia-edit"></span> <span></span> </a> <a href="#" class="cdx-button cdx-button--fake-button cdx-button--fake-button--enabled cdx-button--weight-quiet cdx-button--icon-only" id="ca-viewsource-sticky-header" tabindex="-1" data-event-name="ve-edit-protected-sticky-header"><span class="vector-icon mw-ui-icon-wikimedia-editLock mw-ui-icon-wikimedia-wikimedia-editLock"></span> <span></span> </a> </div> <div class="vector-sticky-header-buttons"> <button class="cdx-button cdx-button--weight-quiet mw-interlanguage-selector" id="p-lang-btn-sticky-header" tabindex="-1" data-event-name="ui.dropdown-p-lang-btn-sticky-header"><span class="vector-icon mw-ui-icon-wikimedia-language mw-ui-icon-wikimedia-wikimedia-language"></span> <span>17 languages</span> </button> <a href="#" class="cdx-button cdx-button--fake-button cdx-button--fake-button--enabled cdx-button--weight-quiet cdx-button--action-progressive" id="ca-addsection-sticky-header" tabindex="-1" data-event-name="addsection-sticky-header"><span class="vector-icon mw-ui-icon-speechBubbleAdd-progressive mw-ui-icon-wikimedia-speechBubbleAdd-progressive"></span> <span>Add topic</span> </a> </div> <div class="vector-sticky-header-icon-end"> <div class="vector-user-links"> </div> </div> </div> </div> </div> <div class="mw-portlet mw-portlet-dock-bottom emptyPortlet" id="p-dock-bottom"> <ul> </ul> </div> <script>(RLQ=window.RLQ||[]).push(function(){mw.config.set({"wgHostname":"mw-web.codfw.main-69bdbbc57c-ppq4w","wgBackendResponseTime":187,"wgPageParseReport":{"limitreport":{"cputime":"0.688","walltime":"0.848","ppvisitednodes":{"value":5328,"limit":1000000},"postexpandincludesize":{"value":99097,"limit":2097152},"templateargumentsize":{"value":12173,"limit":2097152},"expansiondepth":{"value":16,"limit":100},"expensivefunctioncount":{"value":7,"limit":500},"unstrip-depth":{"value":1,"limit":20},"unstrip-size":{"value":89461,"limit":5000000},"entityaccesscount":{"value":1,"limit":400},"timingprofile":["100.00% 769.552 1 -total"," 23.96% 184.394 1 Template:Reflist"," 17.41% 133.963 15 Template:Citation_needed"," 13.80% 106.176 15 Template:Fix"," 13.09% 100.754 1 Template:Public_finance"," 12.79% 98.442 1 Template:Sidebar_with_collapsible_lists"," 10.73% 82.588 1 Template:More_citations_needed"," 10.02% 77.107 1 Template:Ambox"," 9.52% 73.246 2 Template:Cite_journal"," 8.73% 67.149 1 Template:Short_description"]},"scribunto":{"limitreport-timeusage":{"value":"0.437","limit":"10.000"},"limitreport-memusage":{"value":10686631,"limit":52428800},"limitreport-logs":"anchor_id_list = table#1 {\n [\"CITEREFBlöndal2004\"] = 1,\n [\"CITEREFBrown-CollierCollier1995\"] = 1,\n [\"CITEREFDavis2009\"] = 1,\n [\"CITEREFDillow2010\"] = 1,\n [\"CITEREFHiggs2008\"] = 1,\n [\"CITEREFJanda2013\"] = 1,\n [\"CITEREFKirkup2012\"] = 1,\n [\"CITEREFMegalogenis2009\"] = 1,\n [\"CITEREFNiederjohn2011\"] = 1,\n [\"CITEREFSeater2008\"] = 1,\n [\"CITEREFVickrey1996\"] = 1,\n [\"CITEREFWilliam_J._Baumol,_Alan_S._Blinder2005\"] = 1,\n [\"CITEREFYandle2022\"] = 1,\n}\ntemplate_list = table#1 {\n [\"Authority control\"] = 1,\n [\"Citation needed\"] = 15,\n [\"Cite book\"] = 2,\n [\"Cite encyclopedia\"] = 2,\n [\"Cite journal\"] = 2,\n [\"Cite web\"] = 12,\n [\"Commons category\"] = 1,\n [\"DEFAULTSORT:Deficit Spending\"] = 1,\n [\"Further\"] = 1,\n [\"Harv\"] = 1,\n [\"ISBN\"] = 1,\n [\"Main\"] = 1,\n [\"More citations needed\"] = 1,\n [\"Public finance\"] = 1,\n [\"Quote\"] = 3,\n [\"Reflist\"] = 1,\n [\"Rp\"] = 1,\n [\"Short description\"] = 1,\n [\"Use mdy dates\"] = 1,\n}\narticle_whitelist = table#1 {\n}\nciteref_patterns = table#1 {\n}\n"},"cachereport":{"origin":"mw-api-int.codfw.main-5f44755944-hf4wv","timestamp":"20250302033422","ttl":2592000,"transientcontent":false}}});});</script> <script type="application/ld+json">{"@context":"https:\/\/schema.org","@type":"Article","name":"Deficit spending","url":"https:\/\/en.wikipedia.org\/wiki\/Deficit_spending","sameAs":"http:\/\/www.wikidata.org\/entity\/Q17010135","mainEntity":"http:\/\/www.wikidata.org\/entity\/Q17010135","author":{"@type":"Organization","name":"Contributors to Wikimedia projects"},"publisher":{"@type":"Organization","name":"Wikimedia Foundation, Inc.","logo":{"@type":"ImageObject","url":"https:\/\/www.wikimedia.org\/static\/images\/wmf-hor-googpub.png"}},"datePublished":"2003-07-15T23:36:11Z","dateModified":"2025-02-13T20:00:05Z","image":"https:\/\/upload.wikimedia.org\/wikipedia\/commons\/c\/cd\/Government-Vedder-Highsmith-detail-1.jpeg","headline":"spending in excess of revenue"}</script> </body> </html>