So i am writing a paper for my economics class about the budget deficit. i need some help developing a thesis. i also need help finding sites that argue both the pros and the cons of a budget deficit. i was thinking of talking about the democratic and republican view of the deficit but i am having trouble. please help me. thanks so much!
- greβLv 61 decade agoBest Answer
Excess of spending over income for a government, corporation, or individual over a particular period of time.
A budget deficit accumulated by the federal government of the United States must be financed by the issuance of Treasury Bonds. Corporate deficits must be reduced or eliminated by increasing sales and reducing expenditures, or the company will not survive in the long run. Similarly, individuals who consistently spend more than they earn will accumulate huge debts, which may ultimately force them to declare bankruptcy if the debt cannot be serviced. The opposite of a deficit is a surplus.
An accumulated deficit over several years (or centuries) is referred to as the government debt.Government debt is usually financed by borrowing, although if a government's debt is denominated in its own currency it can print new currency to pay debts. Monetizing debts, however, can cause rapid inflation if done on a large scale. Governments can also sell assets to pay off debt. Most governments finance their debts by issuing long-term government bonds or shorter term notes and bills. Many governments use auctions to sell government bonds.
Governments usually must pay interest on what they have borrowed. Governments reduce debt when their revenues exceed their current expenditures and interest costs. Otherwise, government debt increases, requiring the issue of new government bonds or other means of financing debt, such as asset sales.
- lycansLv 43 years ago
The finances is each and all of the planned costs and earnings the government has for the subsequent 12 months. while there's a finances deficit, then the government has planned to spend extra desirable than it takes in, so it has to borrow money. while there's a finances surplus, now not each and all of the money that the government will obtain is spent, so there is money left. remember that the finances is in simple terms the plan. frequently, the government will spend a sprint extra here or extremely much less there than predicted, because of the fact issues could become low-fee than envisioned or some thing like a organic disaster will fee an excellent style of money. consequently, a finances surplus does not could propose there is extremely any money left on the tip of the 12 months.
- 6 years ago
Well that's a good idea.. However, be tricky enough to cut the long story short.. I tell you, it's a long tale and a very broad topic..