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If the government spends more money than it takes in how does it make up the difference?
Wiki User
∙ 6y ago
There lies the rub. It has a deficit at that point and either it stops spending or it has to raise money through other means. In modern politics it raises taxes. One of the problems today is the political party in charge wants to lower the tax rate for rich from 35% to 15% so the money has to be made up by others. This means the middle class will have higher taxes, loss of the benefits, and programs reduced or eliminated because the rich wants to be richer. Just like your own budget when there is a gap between what you earn and what you spend something has to go.
Wiki User
∙ 6y ago
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What is it called when the government spends more than it take in?
When a government spends more money in a year than it takes it, it is called a deficit. When it spends less than it takes in, it is called a surplus.
The difference between the amount of money a business takes in and the amount that it spends is the?
profit
When the federal government spends more money than it takes in it borrows money to make up the difference. what is this called?
Various things; The national debt The deficit Public borrowing Public debt Carelessness Irresponsibility
When the federal government spends more money than it takes in it borrows money to make up the difference what is this called what?
Various things; The national debt The deficit Public borrowing Public debt Carelessness Irresponsibility
What is the federal government spends more money than it takes in it borrows money to make up the difference. What is this called?
Various things; The national debt The deficit Public borrowing Public debt Carelessness Irresponsibility
When the federal government spends more money than it takes in it borrows money to make up the difference what is this called?
Various things; The national debt The deficit Public borrowing Public debt Carelessness Irresponsibility
When the federal governments spends more money than it takes in it borrows money to make up the difference. what is this called?
Deflicit financing
When the federal government spends more money than it takes in it borrows more money to make up the difference what is this called?
Various things; The national debt The deficit Public borrowing Public debt Carelessness Irresponsibility
What is a practice by the government of spending more money than it takes in during a specific time period?
One thing is people demanding the Gov't provide more services and benefits to them then they are willing to share the cost of paying for.
When the federal government spends more money than it takes in it borrows money to make up the differences what is this called?
Deficit financing
When the federal government spends more money than it takes in it borrows money to make up the different. What is this called?
Various things; The national debt The deficit Public borrowing Public debt Carelessness Irresponsibility
What is the difference between the national debt and the federal deficit?
national debt- total amount of money the federal government has arrowed and has yet to pay back. the national debt is how much the economy//government//we owe back. yet will still be paid. federal deficit- a short fall between the amount of revenue the government takes in and the amount it spends. federal deficit will not be paid back. but the amount of money the economy//government//we owe. they will never see the money because it just keeps getting spent.
