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A budget surplus is when revenues exceed spending.# When the government has a surplus, it has extra money that can be reinvested or used to pay off debt. Scarcity is the opposite of excess. When spending exceeds revenue, the government must borrow money to fund spending. The last time the US had a budget surplus was in 2001. In 2021, the US budget deficit was more than $2.8 trillion. 2011 U.S. Debt Ceiling Crisis
September 25, 2022 The 2011 US debt ceiling crisis was one of a series of recurring debates over the increase in the overall size of the US government debt. 25% Rule
September 25, 2022 The 25% rule is a heuristic that can refer to either public finance law or intellectual property law. Bailout
September 25, 2022 Salvation is the injection of money into a business or organization that would otherwise face inevitable collapse. Balanced Budget
September 25, 2022 A balanced budget occurs when revenues equal or exceed total expenditures. Business to Government (B2G)
September 25, 2022 B2G, or business to government, is the provision of goods and services to government agencies at the federal, state, and local levels. Crowding Out Effect
September 25, 2022 The crowding-out effect suggests that an increase in public sector spending leads to a decrease in private sector spending. Deficit Spending
September 25, 2022 A spending deficit occurs when government spending exceeds its revenues. Earmarking
September 25, 2022 Purpose is the process by which people or organizations allocate certain money for certain purposes. Economic Efficiency
September 25, 2022 Economic efficiency is when every scarce resource in the economy is used and distributed between producers and consumers in such a way as to provide the greatest economic return and benefit to consumers. Economic Integration
September 25, 2022 Economic integration or regional integration is an agreement between countries to reduce or eliminate trade barriers and harmonize fiscal policies. Euro Medium Term Notes (EMTN)
September 25, 2022 Medium-term euronote (EMTN) is a medium-term flexible debt security that is issued and traded outside the United States. Fed Balance Sheet
September 25, 2022 The Fed’s balance sheet is a list of assets and liabilities of the Federal Reserve. Fiscal Deficit
September 25, 2022 The government creates a budget deficit by spending more money than it receives from taxes and other revenues, with the exception of debt. Golden Rule
September 25, 2022 The “golden rule” of public spending is fiscal policy, which says that the government should increase borrowing only in order to invest in projects that will pay off in the future. Government Purchase
September 25, 2022 Government purchases include any spending by federal, state, and local agencies, excluding debt and transfer payments such as Social Security. Gross National Income (GNI)
September 25, 2022 Gross national income (GNI) is an alternative to gross domestic product (GDP) as a measure of wealth. It calculates income, not output. International Finance Corporation
September 25, 2022 A member of the World Bank Group, the International Finance Corporation (IFC) provides financing for investment by private enterprises in developing countries. J-Curve Effect
September 25, 2022 The J-curve depicts a trend that begins with a sharp decline followed by a sharp rise. Just Compensation
September 25, 2022 Property owners are given fair compensation for the lawful seizure of personal property or land. Odious Debt
September 25, 2022 Odious debt is a term applied to the debt of a predecessor government that the successor government wishes to relinquish on ostensibly moral grounds. Open Market Operations
September 25, 2022 Open market operations are one of three tools used by the Fed to influence the availability of money and credit. Overlapping Debt
September 25, 2022 Overlapping debt is when the debt issued to finance the activities of the government falls on several political jurisdictions, while the joint debt is distributed among them. Pork Barrel Politics
September 25, 2022 Funding for a local project can be included in a larger budget as a separate item. It’s the pork barrel policy. Public-Private Partnerships
September 25, 2022 Public-private partnership allows large-scale public projects such as roads, bridges or hospitals to be carried out with private funding. Pump Priming
September 25, 2022 Pumping refers to steps taken to stimulate spending in an economy during or after a recession.