| dc.description.abstract | A MAJOR debate on the deficit issue has
been on for quite some time, involving questions
such as the following: Do deficits really
matter? If they do, how should they be
measured? Are deficits always a bad thing?
If so, how should they be reduced—through
tax increases, or through spending cuts? If
through tax increases, which of the taxes
need to be raised? If through spending cuts,
which of the expenditures need to be
reduced—interest payments? defence spending?
expenditure on public employees*
wages, salaries and allowances? subsidies?
If subsidies need to be slashed, which
ones—subsidies to cover the losses of public
enterprises? subsidies to encourage the use
of a particular input in the interest of the
national economy? export subsidies? subsidies
to lower the prices of particular consumer
goods for the benefit of all consumers
or particular groups of consumers? | |
