Who benefits in the long run from higher government budget deficits?

In the context of higher government budget deficits, recipients of government-provided goods and services that are redistributed are likely to benefit in the long run. This is because budget deficits often lead to increased government spending, particularly on social programs aimed at benefiting vulnerable populations. When these programs are funded through deficits, the government can provide immediate financial support, healthcare, education, and other essential services that are critical for low-income individuals and families.

Redistribution involves reallocating resources within the economy to aid those who may need it most, which can stimulate economic activity and support social welfare. As deficits grow, the government may prioritize these expenditures to address societal needs, thereby enhancing the quality of life for those receiving more substantial benefits from these redistributive policies.

Furthermore, in times of economic challenges or downturns, governments might be compelled to run deficits to maintain or expand these services, ensuring that the most disadvantaged groups continue to receive support despite the fiscal strain. This long-term structural approach to budgeting helps create a safety net that contributes to overall economic stability and growth.

The other choices would not adequately capture the dynamics of government budgeting and its implications on various groups in the context of deficits.