crowding out

  

Definition

Theory that heavy borrowing by a government (which can pay any interest rate) soaks up the available credit, leaving little for the private sector at affordable interest rates. Opponents of this theory point out that new sources of credit emerge at every stage of an interest rate increase.

Use crowding out in a sentence

  • The crowding out that was occurring in the new government made it unlikely to be able to proceed with borrowing as we had hoped.

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  • During my campaign, I informed the people how we had to avoid crowding out because it took too much money and hurt us all.

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  • You may want to try crowding out another company so that they don't have any way to get a hold of what they need.

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