Please help me...I need your help...Macroeconomics?

Question

In what ways do future generations benefit from this generatin's deficit spending? Cite three examples.

Answer 1

The are no benefits !

Answer 2

Deficit spending, used carefully and only under the right circumstances, can help bring the country out of a recession by creating jobs and stimulating the economy.  Deficit spending is generally required when legitimate but unexpected expenses come up.  Things like being attacked, or having a medical epidemic, etc.   Failing to fund research into various diseases over the years might have resulted in catastrophe.   And lastly, when an opportunity arises that has the potential to be a huge benefit, but needs some seed money to get started, then deficit spending might be appropriate.

Answer 3

It depends on how the money is spent.

If it is used to prop up current spending like those tax rebates, they will do no future good. If is is invested and the return on investment is higher than the interest rate paid, future generations enjoy the benefits.

For example, those vaccines you got as a kid were probably a pretty good investment. The money spent on your public education was probably well spent. Money spent building roads and bridges is also a good investment unless the bridge goes nowhere and is just porkbarrel spending.

Answer 4

Do your own homework and readings you are never going to learn if someone else does your work.