Borrowing and Political Equilibrium Tax is not the only way to finance the government expenditures. Government borrowing
Question:
Borrowing and Political Equilibrium
Tax is not the only way to finance the government expenditures. Government borrowing has been a major mechanism to sustain the large outlays in the recent decades. In the 2009 financial crisis, the Obama administration has implemented a large stimulus. Retrospectively, however, it was likely to be too small to bring the U.S. economy back to the trajectory. In contrast, the spending during the 2020-21 pandemic has been significantly larger (both under Trump and Biden administrations).
Using the budget projection in the CBO's report and the Figure, 12.1 of the textbook, contrast the magnitude of the budget deficit in 2009 and 2020/21 and describe your findings.
Understanding Business Ethics
ISBN: 9781506303239
3rd Edition
Authors: Peter A. Stanwick, Sarah D. Stanwick