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About: Coercive deficiency     Goto   Sponge   NotDistinct   Permalink

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Coercive deficiency is a phrase that originated in study of the executive branch of the American federal government, where it described the process by which budget holders could allow themselves to run out of money prior to the end of a fiscal period, on the assumption that Congress would then feel morally obligated to supply the missing funding in order to prevent cessation of services or breach of contracts. The phrase was coined by American political economist and historian in his 1943 book The Spending Power: A History of the Efforts of Congress to Control Expenditures.