BUDGET deficit - wasteful/inefficient?
In one of the mark schemes it said cons of a budget deficit is that it is WASTEFUL and INEFFICIENT.
How is this? If government spending is greater than revenue it must mean they're spending it on things to improve welfare eg, merit goods, public goods so why is that wasteful and inefficent?
How is this? If government spending is greater than revenue it must mean they're spending it on things to improve welfare eg, merit goods, public goods so why is that wasteful and inefficent?
Original post by BrownieLover
In one of the mark schemes it said cons of a budget deficit is that it is WASTEFUL and INEFFICIENT.
How is this? If government spending is greater than revenue it must mean they're spending it on things to improve welfare eg, merit goods, public goods so why is that wasteful and inefficent?
How is this? If government spending is greater than revenue it must mean they're spending it on things to improve welfare eg, merit goods, public goods so why is that wasteful and inefficent?
Assumes public sector is not as efficient as private sector due to the lack of the profit motive
Quick Reply
Related discussions
- Do macros matter on a cut?
- Fiscal policy - GCSE Economics
- how should i loose weight
- Is University of kent going to crSH AND BURN AFTER MORE ROUNDS OF REDUNDANCIES
- Economic edecel prediction
- Teaching
- AQA A Level Economics Paper 2 (7136/2) -22th May 2023 [Exam Chat]
- benefits of handwriting lecture notes
- 2024 Budget: Chancellor Jeremy Hunt under pressure to cut taxes
- Tools to Manage your Finances at University
- £90 a week budget?
- ACA Training contract/school leaver specific circumstances
- How to handle your money at university
- economics - macro
- KU Cost of Living Support: Student Pantry
- Platforms to get the Best Deals as a Student
- Questions about height
- Pyrazinamide effects on e-coli HELP
- Not sure how to help a friend, who runs out of money two weeks prior pay for months
- economics - macro
