The political consensus in the United States today is that the nation avoid deficit spending. But as virtuous and unassailable as that goal sounds, it has fallacies and dangers. In a lucid, nontechnical writing style, Benavie shows that deficits can be either good or bad and explains how to tell the difference. Deficits, or government borrowing, can be beneficial or harmful depending on what the government does with the money. Preventing such borrowing, Benavie points out, would be comparable to preventing one's family from borrowing money to buy a house or to put a child through college.
Deficits can be beneficial to the nation's economic health in three main ways. When the economy slumps, a deficit, which is automatically created, helps to reduce the severity of the recession. When the economy is seriously depressed, boosting the deficit may be the only cure. Finally, deficits to support such investments as basic research, cleaning up toxic waste, and rebuilding inner cities are crucial to the economic health of future generations.
ARTHUR BENAVIE is Professor of Economics at the University of North Carolina at Chapel Hill./e His specialty is macroeconomics, a field which includes the topic of government deficits. He has published numerous journal articles and two books for economists.
Introduction
The Deficit: A Symbol of Evil in American Politics
Jobs, Inflation, and the Deficit
The Deficit and Our Future Standard of Living
The Rich, the Poor, and the Deficit
The Baby Boomers and the Future Deficit
Social Security, Medicare, and the Deficit
How Do European Countries Do It?
Goal '95: A Balanced Budget by 2002
Deficit Myths: What's True, What's False?
Questions and Answers
Index
![Deficit Hysteria: A Common Sense Look at America's Rush to Balance the Budget [Hardcover]](/itemImage/2/4/9/1/2_4628093.jpg "Deficit Hysteria: A Common Sense Look at America's Rush to Balance the Budget [Hardcover]")