Well, obviously if our economy is in a recession and unemployment is at a high, the government cannot raise taxes. This would prove unfruitful and actually further increase unemployment. Raising taxes in this scenario would be what is called a negative multiplier, which would increase the deficit by even more as there would be more government aid needed. So the government must borrow, and usually from foreign countries. The borrowed money can be allocated to spur economic growth. For example, if the government uses the money to create an infrastructure, then there will be an increase in employment of the labor force. Thus, more money will flow back into the economy, which would create an increase in business opportunities and create employment. With enough borrowing, the government could boost itself out of a recession. Deficit Spending. Investopedia
Well, obviously if our economy is in a recession and unemployment is at a high, the government cannot raise taxes. This would prove unfruitful and actually further increase unemployment. Raising taxes in this scenario would be what is called a negative multiplier, which would increase the deficit by even more as there would be more government aid needed. So the government must borrow, and usually from foreign countries. The borrowed money can be allocated to spur economic growth. For example, if the government uses the money to create an infrastructure, then there will be an increase in employment of the labor force. Thus, more money will flow back into the economy, which would create an increase in business opportunities and create employment. With enough borrowing, the government could boost itself out of a recession. Deficit Spending. Investopedia