I am an Ultra-Conservative, Alpha-Male, True Authentic Leader, Type "C" Personality, who is very active in my community; whether it is donating time, clothes or money for Project Concern or going to Common Council meetings and voicing my opinions. As a blogger, I intend to provide a different viewpoint "The way I see it!" on various world, national and local issues with a few helpful tips & tidbits sprinkled in.
Structural and cyclical deficits are two components of deficit spending. These terms are especially applied to public sector spending which contributes to the budget balance of the overall economy of a country. Deficit spending, or simply deficit, is defined as over-spending: the amount by which spending exceeds revenue over a particular period of time. The total budget deficit, or headline deficit, is equal to the sum of the structural deficit and the cyclical deficit (or surplus/es).
A structural (permanent) deficit differs from a cyclical deficit in that it exists regardless of the point in the business cycle due to an underlying imbalance in government revenues and expenditures.
As deficits must be funded by borrowing, a structural deficit is an issue for a government as even at the high points of the business cycle the government may need to continue to borrow and thus continue to accumulate debt.
Structural deficit issues can only be addressed by explicit and direct government policies, primarily involving reducing government spending or increasing taxation.
How do you think 2016 looks for Cudahy on deficits?
A “Deficit” is when the Roosters come home to roost!