Why Fiscal Deficits Undermine Economic Growth

Intro: ┬áTypical opposition to fiscal deficits centers on the symptoms of fiscal deficits and not the causes. Deficits are bad for the economy because they tend to reflect too much government spending relative to what is optimal, undermining productivity, and they discourage savings in the aggregate, weakening the potential for investment. It seems intuitive that … Continue reading Why Fiscal Deficits Undermine Economic Growth