Why Not Just Put the Entire Federal Budget on Credit?
The sequester is far too devastating for America to bear. Already the White House has had to stop giving tours, and who knows how it will escalate from there? Maybe next they’ll cancel the Easter Egg Roll, or close the mineral exhibit at the Smithsonian. Or reduce operating hours at the Washington Monument bookstore. Soon there will be nothing left to do in D.C. but go to the visitors’ gallery at the Capitol building and shout at the politicians down below.
A mere $85 billion cut has caused all this agony, yet the federal deficit has been over $1 trillion for each of the past four years. Maybe it’s time to admit we’ll never stop running huge deficits. The majority of our spending comes from entitlements, and we can’t cut those because people are, by definition, “entitled” to them. That means it doesn’t matter what math and reason say, we have to continue to pay for them. Thus an increased national debt each year is inevitable. But so what?
Think about it: We’re past $16 trillion in debt so far, and we’re just fine. We have a pretty good scheme going to keep up the level of government we want: We take big loans from our children and then die before paying them back. And we have no reason to stop. What’s the worst that has happened so far? America’s credit was downgraded. And that hurt us how? It’s not like people are going to stop giving the federal government loans — it has nukes. Plus, the president has asserted that he can take out anyone he wants with drone strikes whenever he feels like it (“Want to know who’s on my secret kill list? I’ll give you a hint: No one who loans us money.”). So that brings us to the obvious question: Why not just put the entire federal budget on credit?
Are we just being suckers paying taxes? The point of taxes is that someone needs to pay our government’s bills, but considering the amount of debt we’ve run up with no problem, maybe that’s not true. It seems unfair that the politicians see no reason to cut spending, but we have to keep paying taxes like the federal deficit actually means something. So why not give our economy a big stimulus and just put all government operations on credit? The debt ceiling will now just be whatever numbers we actually have words for.
Every household in the lower 20% could be given one million dollars. Poverty ended with a few keystrokes! Let's not neglect the middle class. College could be free. Every five years each driver could be given an American made automobile.
You could still pay $35,000 for a new foreign model, if you want.
Utilities could be free. Food free! Housing free.
The debt might be 500 trillion but who cares. We owe it to ourselves.
Only the upper 1% would not receive these benefits. Those fools, along with the tedious middle class, would continue to work 60 to 80 hours a week to make it all happen.
Bold decisive action is all that is required.
The consider....
1. Record economic activity and profits through out our core industry sectors.
2. Record low government tax revenues per GDP.
3. Record or at record wealth disparity.
4. Record level of poor and poverty classes increasing continually.
5. Record low labor wages to GDP.
6. Record high comnsumer credit.
7. Record high educational debt.
8.. Record high credit default.
9. High unemployment to GDP to activity and profits.
The top 20% of the nation is doing very well while the majority is not doing so well and this should NOT be a political partisan matter of address! The government is already at record lows in terms of tax revenue to GDP while the debt interest service to GDP alone, will continue to increase year to a point of unsustaiability.
While "cutting & slashing" the government (including DOD) to a well reasoned back date, say pre-9/11 would be of benefit, cutting & slashing beyond that will be 'extremly' economically counter productive.
An interest 101 read on the debt and yes, one is from a democrat perspective and for good cause:
http://www.policyshop.net/home/2013/1/28/interest-payments-on-national-debt-will-partly-go-to-senior.html
http://www.investmentcontrarians.com/national-debt/
Or maybe we should just do what D.C. does and run up massive debt and then just take it from our neighbors that have more, because that isn't fair and we should just spread their wealth.
The government has no credit or bills. They belong to those forced to settle the obligations, which are the taxpayers.
If one enriches a citizen lender with a bond, it creates an asset for the nation. and the nation incurs a debt, that same bond issued and all accruing interest. Combine the asset and liability, and the two add to zero. But imagine how well a government must operate in order to attract funds from citizen lenders. It is the end of government squander and the end of Taxation's deterrent effect.
GM