The end result of deficit spending is the rising prices and economic instability

The end result of deficit spending is the rising prices and economic instability. Even though it is painless, it is very much inflation-prone compared to other sources of financing. Deficit funding is necessary if used the right way and in the right time. Success depends on how the government deficit and other financial tools can impact the economy with an out come of business activity and profit. Most of the shortcomings of deficit financing can be reduced but limited so that the benefits of deficit spending are also rewarded. Deficit spending helps in most cases in a short term but hinders a long-term economic growth.