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Deficit is a function of both expenditures and revenue
Posted on: October 2, 2020 at 16:30:15 CT
ScottsdaleTiger MU
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The deficit has increased because of increased expenditures and the fact they've increased faster than revenue.
Classic Macro Theory (see Keynes) holds that in times of no or slow growth that the government can stimulate the overall economy by increased spending. I.e. deficit spending is justified.
In 2020, the U.S. economy had to deal with the economic impact of treating covid19. The typical treatment was to "shut down", "lock down" the economy to reduce inter personal contact. The Federal Government has adopted and put in place various program, spending programs, to stimulate the economy and offset the economic impact of covid19. It's classical Keynesian Economics.
The Deficit has increased because spending has increased and revenue decreased due to the shut down of economic activity due to Covid19. I.e. there's a blurb on Drudge that 50I% of the bars and restaurants in New York City have or are going to permanently close. Over half of the store front businesses in San Francisco are closed. Various airlines will be filing Chapter 11's in the near future because they have no passengers.
The deficit have been largely financed by the Federal Reserve monetizing the increased Federal Debt.
I trust you understand of economics is better than your posts sadly suggest.
Classic Macro Theory (see Keynes) holds that in times of no or slow growth that the government can stimulate the overall economy by increased spending. I.e. deficit spending is justified.
In 2020, the U.S. economy had to deal with the economic impact of treating covid19. The typical treatment was to "shut down", "lock down" the economy to reduce inter personal contact. The Federal Government has adopted and put in place various program, spending programs, to stimulate the economy and offset the economic impact of covid19. It's classical Keynesian Economics.
The Deficit has increased because spending has increased and revenue decreased due to the shut down of economic activity due to Covid19. I.e. there's a blurb on Drudge that 50I% of the bars and restaurants in New York City have or are going to permanently close. Over half of the store front businesses in San Francisco are closed. Various airlines will be filing Chapter 11's in the near future because they have no passengers.
The deficit have been largely financed by the Federal Reserve monetizing the increased Federal Debt.
I trust you understand of economics is better than your posts sadly suggest.
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Deficit is a function of both expenditures and revenue - ScottsdaleTiger MU - 10/2 16:30:15