The policy of deficit spending can be called “counter-cyclical fiscal management.” The idea, as advanced by British economist John Maynard Keynes, is that the government should increase it spending during a downturn or recession, compensating for reduced business activity with deficit-financed spending. As the Keynesian theory has it, once the economy recovers, the restoration of taxable activity would produce a tax surplus, which would allow the deficits to be paid off. We can spend our way to prosperity , US Economic philosophy. How have you been affted by deficit spending ?

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