Explain return to deficit spending since turn of century


Discussion:

Visit the website of the Congressional Budget Office (https://www.cbo.gov) and find the U.S. Federal deficit (surplus) and total debt.

As late as 1992, the United States was running budget deficits of nearly $300 billion. During the remainder of the 1990's, deficits declined and became surpluses. As the new century began, these surpluses again turned into deficits.

• Explain the decline in deficits and subsequent surpluses in the late 1990's.

• Explain the return to deficit spending since the turn of the century.

• Consider the causes of the deficits and surpluses and provide your own insight as to whether these surpluses or deficits have a "positive" or "negative" effect on our economy.

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Microeconomics: Explain return to deficit spending since turn of century
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