Leslie Lum's Introduction to Business: Readings and Workbook: "Module 1: The Context of Business"

Please re-read the section titled "Fiscal Policy" on page 77 and review the graph on page 78 to learn about the definition of the budget deficit.

In the year of an election, the candidates promise to reduce government spending. Usually this does not happen. The deficit in the United States is growing with the continuation of the wars in Iraq and Afghanistan. The yearly deficit continues to add to the national debt. Some U.S. citizens think that government spending helps the economy grow. Others think that government spending comes out of the hands of consumers and business owners, thereby slowing growth.

After reviewing the text, write a paragraph that expresses your thoughts on this argument.