deficitspending



Deficit spending is when a company or the government spends more money than they make, thus putting them in debt. FDR’s New Deal program used the deficit spending method. He used more money than he had to spend. This put the country in further debt.

Information Provided by: Prentice Hall America Pathways to the Present p. 979, 550 Picture Provided by: http://run4chocolate.files.wordpress.com/2007/11/cardowdebtcartoon.gif