Greek Crisis

Deficit spending is the amount by which a government, private company, or individual's spending exceeds income over a
particular period of time, also called simply "deficit," or "budget deficit," the opposite of budget surplus.” This difference is
usually made up by borrowing or minting new funds and occurs for numerous reasons. Today, one of the major reasons
cited for deficit spending is to ensure high levels of economic activity. Whilst there is significant economic data testament
to this, there is also growing evidence to the contrary and of the great influence of government deficits upon a national
economy. Indeed, “the use of deficit financing to maintain total spending or effective demand was an important discovery
of the economic depression of 1930” however, recently, swelling deficits have been the root cause of problems for several
member states of the Eurozone, putting them at risk of default.
With Greece's budget woes considered the most grave; this article focuses on this member state and the mounting
speculation of the effects on the stability of the Euro currency and the entire Euro region as a whole. The Greek crisis has
sparked fears that this may be only the beginning of a deeper sovereign debt crisis that could ultimately destabilize the
Eurozone In the midst of a sluggish recovery in the global economy, the key questions right now are whether these fears
are exaggerated and more importantly, how to deal with these problems.