Deficit spending

Deficit spending is when someone is spending more money than they have. In other words, it is when there is more spending than there is revenue. It is also called simply deficit, or budget deficit. The opposite of a deficit is a budget surplus. The term may be used for the budget of a government, private company, or person.

Government deficit spending is a point of controversy in economics, with important economists having different views.^[1]

1. ↑ In "Britain’s Deficit", February 16, 2010, Paul Krugman 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.