compensatory spending

Friendly

Word: Compensatory Spending

Part of Speech: Noun

Definition: Compensatory spending is money that a government borrows and spends to help improve or stimulate the economy. This often happens when the economy is not doing well, and the government wants to encourage people to spend more money or create jobs.

Usage Instructions:

• Use "compensatory spending" when discussing government financial policies or economic measures.
• It is often used in the context of economic recovery, budgets, or financial strategies.

Example:

• "The government announced a plan for compensatory spending to support small businesses during the recession."

Advanced Usage:

In discussions about economics, "compensatory spending" might be examined in relation to fiscal policies, economic stimulus packages, or inflation control measures.

Word Variants:

• Compensate (verb): To make up for something lost or lessened.
• Compensation (noun): Something given to make up for a loss or injury.

Different Meaning:

While "compensatory spending" specifically refers to government spending for economic stimulation, "compensation" can refer to rewards or payments given for work or losses in various contexts, not just government-related.

Synonyms:

• Fiscal stimulus
• Economic stimulus
• Government spending

Idioms and Phrasal Verbs:

• "Stimulate the economy": This phrase means to encourage economic growth, similar to what compensatory spending aims to do.
• "Pump money into": This phrasal verb means to inject funds into an economy or business, which is related to the concept of compensatory spending.

Summary:

Compensatory spending is an important concept in economics, particularly in discussions about how governments can help their economies grow during tough times.

Academic

Noun

1. spending money raised by borrowing; used by governments to stimulate their economy

Synonyms

• deficit spending
• pump priming