The enormous budget deficits of 2009 through 2011 meant that the federal government was borrowing upwards of $1.5 trillion per year. If that borrowing had limited the ability of the private sector to get financial capital for its purposes economists would call this

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When the government borrows a large amount of funds, it increases the demand for credit, leading to higher interest rates. This rise in interest rates makes it more expensive for private businesses to borrow money, leading to a decrease in their ability to obtain necessary capital, and thus reducing private investment. This phenomenon is known as "crowding out."

The Enormous Budget Deficits of 2009 Through 2011 Meant That