<One can perpetuate anything but when the value of what is being perpetuated starts to become questioned the solution or repetition of action is not a solution.>
Are you trying to say that deficits and debt are "evil?" I think the key issue to focus on is economic growth, not deficits and debt. What makes deficits and debt "evil?" Debt is harmless, even desirable, if it is successfully employed to achieve growth. Ron Reece hammered home this point on deaf ears a while back and provided good arguments.
I'll try here to be a little less erudite and provide some common sense examples.
Have you spoken to an investment banker lately? He'll tell you that borrowing money for good investments is sound financial practice. What's wrong with borrowing money for the following investments?: the car that gets me to work, the castle that I live in, the new store that helps a retailer grow more profitable, the school that educates my children, and the aircraft carrier that defends my country.
Most people have two budgets: an operating budget for everyday expenses, and a capital budget for investments. They balance their operating budgets, and they borrow – i.e., they spend more than they take in – to help fund their capital budgets.
Good investments generate rewards into the future. My new car gets me to work for several years. A new store increases a retailer's profits for many years. A new school helps to educate our children year after year. And, year after year, an aircraft carrier gives foreigners a big incentive not to try to take my car, my Castle, or my kids' school away from me. All of these things are good investments.
Investment stimulates growth. Growth means to get wealthier. To be sure, some investments fail and others succeed. But if we keep making more good investments than bad ones, we'll succeed in achieving growth.
The USA has become the wealthiest nation in the history of civilization. Obviously something has been done right. What do you think that is? |
