How, by running a budget deficit, the government can increase the level of output and employment?

Question

How, by running a budget deficit, the government can increase the level of output and employment?

Answer 1

Logically specking if there is more money in peoples pockets they have higher moral. Moral is a huge part of our economics if people are scared there stocks will fall they pull out all there money. Which is what is happening right now. The more people that pull there money out of stocks the further they fall. Stimulis package is suppose to change many things also. When money is tight people stop buying WANTS   they save there money for NEEDS and sometimes just sit on it and do nothing thinking if we hit a depression at least i'll have enough money for that last loaf of beard. it's to stop the SCARE factor the more money that is not going thur the system means less money to pay for workers less money for basicly everyone. that package is basicly to jump start this cyclical and get money going again. This has been done in the past to keep us from going in to a depression so far most experts say it failed everytime. and we were alonely saved by other factors. There are those that believe in it thou and thus why we just had it done. We go more in to the national dedt.

to secure our fature. Did it work only time will tell.