Discuss how deficit spending relates to the economic collapse of the Greece and Spain economies....

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Discuss how deficit spending relates to the economic collapse of the Greece and Spain economies. Relate their economic collapse to U.S. current economic problems. How does U.S. deficit spending affect our economy? Greece and Spain have introduced tax hikes, reduced paychecks of government workers, and made drastic spending cuts. These actions have caused violent protests. Should the U.S. follow their example? What would be the consequences of just printing more money to pay the debts of the government?

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Discuss how deficit spending relates to the economic collapse of the Greece and Spain economies. Relate their economic collapse to U.S. current economic problems. How does U.S. deficit spending affect our economy? Greece and Spain have introduced tax hikes, reduced paychecks of government workers, and made drastic spending cuts. These actions have caused violent protests. Should the U.S. follow their example? What would be the consequences of just printing more money to pay the debts of the government?
Before the crisis, up till 2011 the European nations of Greece, Spain, Portugal enjoyed large inflows of capital funds. This allowed them to run up 10% current account deficits and huge spending in excess of revenues in private and public sectors. Everything was fine till the financial crisis in US started. The flows stopped leading to the crisis in these nations-as capital inflows dried up the fiscal condition was laid bare,

Discuss how deficit spending relates to the economic collapse of the Greece and Spain economies. Relate their economic collapse to U.S. current economic problems. How does U.S. deficit spending affect...

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