question archive Do you think that the Federal Government should be spending more money than the revenue it collects (running a deficit)?
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Do you think that the Federal Government should be spending more money than the revenue it collects (running a deficit)?
No, the federal government should not be spending more money than the revenue it collects. But the fiscal deficit is not always considered a negative component. When an economy is in recession, spending money to increase the demand in the economy helps the country to survive the recession. Therefore, most of the countries prefer to keep fiscal deficit at 3% of its GDP. Fiscal deficit at 3% of the GDP is considered bearable.