Deficit Spending
Definition:Deficit spending is when a government spends more money than it earns in revenue (like taxes). To cover the extra spending, the government borrows money, usually by selling bonds or taking loans. This is often done to help stimulate the economy, especially during tough economic times.
Usage Instructions: - "Deficit spending" is a noun, so you use it to talk about the action of spending more than what is earned. - You might hear it in discussions about government budgets, economic policies, or financial news.
Example: - "During the recession, the government engaged in deficit spending to support businesses and create jobs."
Advanced Usage: - Economists discuss the effects of deficit spending on inflation and national debt. For example: "While deficit spending can stimulate growth in the short term, it may lead to higher interest rates in the long term."
Word Variants: - Deficit (noun): The amount by which spending exceeds income. Example: "The country has a large deficit this year." - Spending (noun): The act of using money to buy goods or services. Example: "Government spending on healthcare has increased."
Different Meanings: - While "deficit" can refer to any shortfall (like a personal budget deficit), "deficit spending" specifically refers to government financial practices.
Synonyms: - Borrowing (in the context of raising funds) - Overspending (though this can refer to personal finance as well)
Idioms and Phrasal Verbs: - There are no specific idioms or phrasal verbs directly related to "deficit spending," but you may come across phrases like "run a deficit," which means to operate with a shortfall in budget.
Summary: - Deficit spending is a way for governments to manage their budgets and stimulate the economy by borrowing money.