| The national debt is fairly trivial, in view of our GNP. Most businesses do not, in fact, balance the books, but incur obligations, primarily to finance capital improvements, just as most people carry a mortgage and perhaps a car loan. As long as debt service is not a strain, the convenience of debt, and its contribution to productivity, outweighs scruples about interest. Debt service is a relatively small proportion of the federal budget. Since there is not an urgent need to accelerate the retirement of federal debt,there is no real reason not to provide tax relief to people. In many instances, such tax relief will allow them to retire commercial debt, thus strengthening family finances. Mainly, though, it will honor the principle that people should retain as much of their income as possible, and not have government substitute its discretion for theirs about spending the money......... |
