Harvey, John2020-04-272020-04-272019https://repository.tcu.edu/handle/116099117/39725There is, perhaps, no greater point of contention among macroeconomists than the topic of government budget deficits-- are they harmful, helpful, or does the answer depend on the conditions of the economy at the time of the deficit? Additionally, political attitudes toward fiscal policy oscillate frequently, from "deficits don't matter," to "deficits will bankrupt our children." This paper investigates the assumptions underpinning both views, finding that, at least in a country with the sole authority to create its own currency (like the United States), deficits often have positive economic outcomes, leading to higher employment, GDP, and standards of living.government spendingmacroeconomicsbudget deficitcrowding out