Tag Archives: The Big Picture

“So what,” you might say. If the government wasn’t spending it, someone else would be. Indeed, when government spends more, whatever the spending is on, there is ultimately only one place the government can obtain the resources.
That place is you and everyone else who earns income each year in the United States. In the short run, just as you can borrow, so too can governments, an activity that is called running a budget deficit. Nevertheless, the ability to borrow does not change the fundamental budget constraint facing our society. Read More →