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    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?
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    (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?
    Assumes public sector is not as efficient as private sector due to the lack of the profit motive
 
 
 
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