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Deficits Do Matter

In: Deficit

Author

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  • Marie Bussing-Burks

Abstract

This chapter defends the viewpoint of those who say that deficits are a huge concern and do matter. Up to this point, you have learned that continual annual deficits have led to a massive national debt. As you’ll see, there are many traditional, long-standing arguments against deficit financing, along with some newer arguments, such as those related to the dangers of an increasing reliance on foreign creditors and the risk of potential downgrades of the U.S. debt. Many economists, politicians, and citizens say the debt matters more now than it used to. Let’s explore why.

Suggested Citation

  • Marie Bussing-Burks, 2012. "Deficits Do Matter," Springer Books, in: Deficit, edition 0, chapter 0, pages 77-88, Springer.
    • Handle: RePEc:spr:sprchp:978-1-4302-4840-8_7
    DOI: 10.1007/978-1-4302-4840-8_7
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