There is the global recession in 2008-2009. US entered a severe recession. When the country face a recession problem, the government have to use expansionary fiscal policy to stimulate the economy by increase public spending and reduce taxes. But after spending a lot of money, they will have more debts. In 2011, US decided to cut deficit by reducing government spending and change the way to collect taxes and adjust the amount of welfare expenses and this might not be a good way in a recession time, but they should do like this to cut the debts to prevent bankruptcy