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.

Government deficit spending is a central point of controversy in economics, as discussed below.

Government deficit spending is a central point of controversy in economics, with prominent economists holding differing views. The mainstream economics^{[citation needed]} position is that deficit spending is desirable and necessary as part of countercyclical fiscal policy, but that there should not be a structural deficit: in an economic slump, government should run deficits, to compensate for the shortfall in aggregate demand, but should run corresponding surpluses in boom times so that there is no net deficit over an economic cycle – a cyclical deficit only. This is derived from Keynesian economics, and has been the mainstream economics view (in the Anglo-Saxon world especially) since Keynesian economics was developed and largely accepted in the Great Depression in the 1930s.

Ronald Ernest "Ron" Paul (born August 20, 1935) is an American politician who has been the U.S. Representative for Texas's 14th congressional district, which includes Galveston, since 1997, and a three-time candidate for President of the United States, as a Libertarian in 1988 and as a Republican in 2008 and currently 2012. He is an outspoken critic of American foreign and monetary policies, including the Military–industrial complex and the Federal Reserve, and is known for his libertarian-leaning views, often differing from his own party on certain issues.

A native of Pittsburgh, Pennsylvania, Paul is a graduate of Gettysburg College and Duke University School of Medicine, where he earned his medical degree. He served as a medical officer in the United States Air Force from 1963 until 1968. He worked as an obstetrician-gynecologist from the 1960s to the 1980s, delivering more than 4,000 babies. He became the first Representative in history to serve concurrently with a child in the Senate when his son Rand Paul was elected to the United States Senate for Kentucky in 2010.

Barack Hussein Obama II (ⁱ/bəˈrɑːk huːˈseɪn oʊˈbɑːmə/; born August 4, 1961) is the 44th and current President of the United States. He is the first African American to hold the office. In January 2005, Obama was sworn in as a U.S. Senator in the state of Illinois. He would hold this office until November 2008, when he resigned following his victory in the 2008 presidential election.

Born in Honolulu, Hawaii, Obama is a graduate of Columbia University and Harvard Law School, where he was the president of the Harvard Law Review. He was a community organizer in Chicago before earning his law degree. He worked as a civil rights attorney in Chicago and taught constitutional law at the University of Chicago Law School from 1992 to 2004. He served three terms representing the 13th District in the Illinois Senate from 1997 to 2004.

Following an unsuccessful bid against the Democratic incumbent for a seat in the United States House of Representatives in 2000, Obama ran for the United States Senate in 2004. Several events brought him to national attention during the campaign, including his victory in the March 2004 Illinois Democratic primary for the Senate election and his keynote address at the Democratic National Convention in July 2004. He won election to the U.S. Senate in Illinois in November 2004. His presidential campaign began in February 2007, and after a close campaign in the 2008 Democratic Party presidential primaries against Hillary Rodham Clinton, he won his party's nomination. In the 2008 presidential election, he defeated Republican nominee John McCain, and was inaugurated as president on January 20, 2009. Nine months later, Obama was named the 2009 Nobel Peace Prize laureate. In April 2011, he announced that he would be running for re-election in 2012.