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deficit spending

deficit spending

21 5.3
Government spends more money than it gets and borrows to pay the difference
  • noun
  • /ˈdɛfɪsɪt ˈspɛndɪŋ/
  • Specialized
translation icon : gasto deficitario
  • The government's strategy of deficit spending aimed to stimulate the economy during the recession.
  • deficit spending by government
  • deficit spending and inflation

The CBO will tell him that this will create massive, massive deficit spending.

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Examples

  • As borrowing costs rise, states face incentives to reduce deficit spending and borrowing.

    Academic text (1997)
  • Governments resorted to more and more deficit spending, generating high inflation.

    Academic text (2012)
  • Failing to recognize that most of that could have come from the deficit spending of the federal government.

    Blog text (7)
  • Community Services: These have been severely affected by the crisis, adding to previous deficit spending levels on communications, transportation, electric, and water service.

    Academic text (2004)
  • And the Fed is enabling massive deficit spending by the White House and Treasury.

    Blog text (1)
  • Congress just approved another $1 trillion in deficit spending (check the news today).

    Blog text (8)
  • For example, an expansionary economic policy was clearly in place as measured by deficit spending, reduction in unemployment, and lower interest rates.

    Academic text (1992)
  • The eurozone needs to establish a way to authorize deficit spending in periods like these.

    Blog text (8)
  • But we achieved peace with the Soviets only after significant deficit spending to make our military and weaponry stronger.

    Blog text (6)
  • Regimes in 1970-81 sought to sustain economic activity by massive deficit spending, which led to hyperinflation.

    Academic text (1991)

Synonyms

compensatory spending
vsdeficit spending
  • Specialized
7.7

Spending the government borrows to help the economy during a slowdown

is broader borrowing to cover any shortfall rather than only stimulus
pump priming
vsdeficit spending
  • Specialized
6.7

Government spending to make the economy grow

is borrowing to cover revenue gaps rather than specifically to stimulate growth

How Large

budget deficit
  • Specialized
62 3.7
deficit spending
  • Specialized
21 5.3
balanced budget
364 3.9

Surface Forms

Morphology

deficit + spending

The meaning 'government spending more than it receives' is directly and compositionally derived from 'deficit' (a shortfall) modifying 'spending' (expenditure); a learner who knows both words can infer it refers to spending that creates or reflects a deficit. This noun-modifier pattern is common and found cross-linguistically in comparable fiscal terms, so the expression is readily comprehensible to B1 learners.

Etymology

The noun deficit spending comes from a clear image: deficit means a gap or not enough money and spending means using money. Imagine a government that keeps paying for things even when its money box is empty and so must 'borrow' to cover the gap — that's why the phrase means the government spends more than it gets.