compensatory spending
- noun
- /ˌkɒmpənˈseɪtəri ˈspɛndɪŋ/
- Specialized
:
gasto compensatorio
- During a recession, the government often resorts to compensatory spending to increase demand.
Examples
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The politician argued that compensatory spending would help jumpstart the sluggish economy.
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Economists debated whether compensatory spending was effective in reducing unemployment rates.
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The government's compensatory spending aims to boost the economy.
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During the recession, compensatory spending was essential for recovery.
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The government implemented compensatory spending to stimulate economic growth during the recession.
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Many experts believe that compensatory spending is crucial for boosting consumer confidence in times of economic downturn.
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As unemployment rates soared, the administration increased compensatory spending to provide relief to struggling families.
Synonyms
21
5.3
Government spends more money than it gets and borrows to pay the difference
Government spending to make the economy grow
Antonyms
- Formal
15
7.0
A government action that cuts public spending or raises taxes to reduce debt
How Wasteful
- Informal
1
6.1
- Slang
- Literature
1
9.1
- Specialized
- Formal
4
3.0
Surface Forms
Morphology
The noun phrase literally combines 'compensatory' (designed to compensate) and 'spending' (payments), so a learner who knows the words can infer it means expenditure intended to make up for a loss or shortfall. However, the full policy/economic sense — government borrowing to stimulate the economy during recessions — is specialized and not fully predictable from the constituents alone, making the expression only partially transparent.
Etymology
The term compensatory spending paints a simple picture: the government does spending to 'make up for' weak demand, like pouring water into a dry garden to help it grow again. So it means money the government borrows and spends to boost the economy during slow times.