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The structural deficit is the deficit that remains across the business cycle, because the general level of government spending exceeds prevailing tax levels. The observed total budget deficit is equal to the sum of the structural deficit with the cyclical deficit or surplus.
Government deficit spending is a central point of controversy in economics, with prominent economists holding differing views. [3]The mainstream economics position is that deficit spending is desirable and necessary as part of countercyclical fiscal policy, but that there should not be a structural deficit (i.e., permanent deficit): The government should run deficits during recessions to ...
There are many examples of structural adjustments failing. In Africa, instead of making economies grow fast, structural adjustment actually had a contractive impact in most countries. Economic growth in African countries in the 1980s and 1990s fell below the rates of previous decades. Agriculture suffered as state support was radically withdrawn.
The kind of deficits we’re talking about are structural, which can sometimes be covered up, but never truly fixed by a good or great economy. Said another way, structural deficits are continual ...
By definition, a government budget deficit must exist so all three net to zero: for example, the U.S. government budget deficit in 2011 was approximately 10% of GDP (8.6% of GDP of which was federal), offsetting a foreign financial surplus of 4% of GDP and a private-sector surplus of 6% of GDP. [31]
Warren Buffett’s Financial Plan to Tackle America’s Debt: ‘I Can End the Deficit in 5 Minutes ...
A trade deficit occurs when a country imports more than it exports -- and that's a good thing for a national economy. Or a terrible thing. Or it might not matter one way or the other. Trade ...
For example, Robert Bixby of the anti-deficit Concord Coalition called the amendment "an avoidance device." [75] Economist Dean Baker has noted that if the federal government were to run budget surpluses with the US still experiencing a large trade deficit, the economy would, in the absence of economic bubbles, shrink and experience rising ...