The two ways in which deficit spending can impose a burden on future generations are?

1 answer:

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By requiring future generations to face higher taxes and to work with a lower accumulated stock of capital goods are two ways in which deficit spending can impose a burden on future generations. As per Keynes, when a government's spending exceeds its revenue, a deficit is created.

Intentional overspending that is done to boost the economy is frequently referred to as deficit expenditure. The most well-known supporter of deficit spending as a method of economic stimulation is British economist John Maynard Keynes. Keynes asserted that the government's accumulated debt might be paid off if the economy is expanding once more and full employment has been attained.

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