A Proposal to Reduce the Federal Deficit and the National Debt

Deficit spending (a technique of fiscal policy whereby the government spends more than it receives in revenue) was popularized by British economist John Maynard Keynes in the 1930s. The original objective was to stimulate the economy, by increasing government spending or decreasing taxes, so as to shorten a period of negative or slow economic growth. The U.S. government has used this tool to combat seven recessions since World War 11. Unfortunately, deficit spending has become standard policy, regardless of the state of the national economy. Huge annual deficits have become common in the last ten years, even during periods of substantial economic growth.