2007-03-12 13:16:56 · 4 answers · asked by Anonymous in Politics & Government ➔ Other - Politics & Government
Simple.Everybody wants things from the government but nobody wants to pay taxes. When you spend more than you take in, you have a deficit.
2007-03-12 13:28:30 · answer #1 · answered by yupchagee 7 · 14⤊ 0⤋
Deficit spending means spending more than your income. It's going into debt.
Why do governments allow it? Because they have no objection to incurring debt that later generations are required to deal with. It's like taking out a mortgage on your house that your kids have to pay.
2007-03-12 20:20:29 · answer #2 · answered by coragryph 7 · 0⤊ 0⤋
Because as long as the US Govt. has enough to "cover" the costs of deficit spending (like Govt. Bonds, Treasury notes, etc..) they can live with a deficit even a very large one.
2007-03-12 20:25:43 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Reagan economics,, the trickle down theory,,,
Basically credit card debt,,,,,,,,,
2007-03-12 20:25:15 · answer #4 · answered by Anonymous · 0⤊ 0⤋