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Keynes himself believed in letting the deficit rise in a recession and paying down debts in the good times.
It's true that Blair and Brown did let the deficit rise in the later years of Labour rule, but not to dangerous levels.
Letting the deficit rise automatically to cushion the economy, on the other hand, would hurt his reputation for being careful with public money important for the bond markets and foreign investors.
In Greece, the center-right opposition is also opposed to the terms of the bailout and is instead calling for tax breaks — a strategy that experts said would make the deficit rise sharply and lead to further turmoil.
When I do that, I get the following: Most of the deficit rise was due to revenues falling below expectations — mainly because of the slump, but to some extent because of tax cuts in the stimulus.
According to the Liberal Party's projections, it would see the federal government's budget deficit rise to about ten billion dollars a year — a sum that would be considered a rounding error in Washington.
Similar(48)
AMERICA'S trade deficit rose to $48.2 billion.
In 1986 the budget deficit rose to 6 percent of GNP.
The fiscal deficit rose sharply, the trade deficit widened, and foreign debt quadrupled during the 1980s.
Meanwhile, UK exports failed to match imports, with the trade deficit rising by £0.9bn to £5.1bn.
Britain will be downgraded if the budget deficit rises because of weak growth.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com