What is Deficit Spending?
Deficit spending is a situation in which more resources are utilized to make purchases than is received through normal revenue generating mechanisms. Essentially, the entity is operating at a budget deficit and is not generating enough resources on its own to meet the approved operating budget. When this happens, expenses are covered through the use of credit accounts and deferred payment plans that allow the entity to purchase now and pay later. While deficit spending can take place in any environment from the home to the corporation, discussions about deficit spending usually focus on a government operation. It is not unusual for governments to function with a deficit. When the taxes collected are not sufficient to meet the line items approved in an annual budget, the difference is usually met by purchasing items using funds borrowed to cover the difference. This means the government is operating at a deficit. However, governments do not always operate in a negative budget situation.
The simple answer is borrowing money you never intend to repay to acquire goods and services you can enjoy today. Examples of deficit spending run from the individual who maintains a permanent debt consisting of credit cards and home loans to the national government whose current national debt is 9.3 trillion dollars. (That’s $30,729.55 for every human citizen of the United States.) The difference is, the bigger the d-bag, the less likely they will pay off their debts. After all, a d-bag never sweats the small stuff. So while you are losing your house and your car, your POTUS is cutting taxes on your culture heroes, the guys who rake in hundreds of millions of dollars a year. And the funny thing is, that’s how we like it! Because hey! That’ll be me, as soon as I can rustle up another line of credit. If you were a liberal, an environmentalist, or a Muslim, you might say “Yo! That’s an unsupportable lifestyle!” But d-bags know the key to maintaining a high standard of living without havi
