deficit

Examples of deficit in the following topics:

• Deficit Spending, the Public Debt, and Policy Making

  • Deficit spending and public debt are controversial issues within economic policy debates.
  • Deficit spending occurs when government spending exceeds tax receipts.
  • Governments usually issue bonds to match their deficits.
  • Deficit spending may, however, be consistent with public debt, remaining stable as a proportion of GDP, depending on the level of GDP growth.
  • Other deficit proposals related to spending or revenue tend to take money or benefits from one constituency and give it to others, a "win-lose" scenario.

• The Election Year Budget

  • Since 1970, the U.S. federal government has run deficits for all but four years (1998–2001) contributing to a total debt of $16.1 trillion as of September 2012
  • Since 1970, the U.S. federal government has run deficits for all but four years (1998–2001) contributing to a total debt of $16.1 trillion as of September 2012 .
  • The plan did not contain proposals to rein in spending on entitlement programs expected to increase the deficit in future years, like Medicare, Medicaid, and Social Security.
  • Instead, the budget request was projected to reduce government deficits by 1.1 trillion dollars over the next ten years.
  • Republicans have criticized the president's plan for not going far enough to reduce future deficits.

• China

  • The American trade deficit with China exceeded $350 billion in 2006, and is the U.S.' s largest bilateral trade deficit.
  • Among foreign nations, China holds the largest amount of U.S. public debt and has been a vocal critic of U.S. deficits and fiscal policy.

• Fiscal Policy

  • However, these definitions can be misleading as, even with no changes in spending or tax laws at all, cyclic fluctuations of the economy cause cyclic fluctuations of tax revenues and of some types of government spending, altering the deficit situation; these are not considered to be policy changes.
  • A fiscal deficit is often funded by issuing bonds.
  • In theory, the resulting deficits would be paid for by an expanded economy during the boom that would follow; this was the reasoning behind the New Deal.
  • When the government runs a budget deficit, funds will need to come from public borrowing (government bonds), overseas borrowing, or monetizing the debt.
  • When governments fund a deficit with the issuing of government bonds, interest rates can increase across the market, because government borrowing creates higher demand for credit in the financial markets.

• Income Security Policy

  • World War II forced the government to run huge deficits, or spend more than they were generating economically, in order to keep up with all of the production the U.S. military needed.
  • By running deficits, the economy recovered, and America rebounded from its drought of unemployment.
  • The military strategy of full employment had a huge benefit: the government's massive deficits were used to pay for the war, and ended the Great Depression.
  • As a result of this, the deficit would increase to $455 billion and is projected to continue to increase dramatically for years to come, due in part to both the severity of the current recession and the high spending fiscal policy the federal government has adopted to help combat the nation's economic woes.

• Fiscal Policy and Policy Making

  • Even with no changes in spending or tax laws at all, cyclic fluctuations of the economy cause cyclic fluctuations of tax revenues and of some types of government spending, which alters the deficit situation; these are not considered to be policy changes.
  • Borrowing: A fiscal deficit is often funded by issuing bonds, like treasury bills or consols and gilt-edged securities.

• The Budgeting Process

  • As such, most of these expenses were not included in the budget deficit calculation prior to FY2010.
  • The annual budget deficit is the difference between actual cash collections and budgeted spending (a partial measure of total spending) during a given fiscal year, which runs from October 1 to September 30.
  • Since 1970, the U.S. federal government has run deficits for all but four years (1998–2001) contributing to a total debt of $16.1 trillion as of September 2012.

• Federal Grants and National Efforts to Influence the States

  • Republican candidate, Mitt Romney, claimed that he would cut federal grants to organizations like PBS to reduce the federal budget deficit.

• Regents of the University of California v. Bakke

  • UC Davis maintained that the program had originally been developed to 1) reduce the historic deficit of traditionally disfavored minorities in medical schools and the medical profession, 2) counter the effects of societal discrimination, 3) increase the number of physicians who will practice in under served communities, and 4) obtain the educational benefits that flow from a racially diverse student body.

• Welfare Reform

  • In the United States, the term was used to get Congress to enact the Personal Responsibility and Work Opportunity Act, which further reduced aid to the poor, to reduce government deficit spending without coining money.