If all citizens of any country in the world were smart, they would start their day, not reading the sports news, nor the weather forecast neither the headlines. They would read news about their countries' BUDGET DEFICIT.
If these citizens of these countries cared for their children, but cared for real, at a very early age, they would teach the kids economics. Didn't you do it? Your kids have started with a handcap.
I have taught my daughter and now I am giving her some notions of cost of capital and macroeconomics. Macroeconomicsis not reality, but she needs to learn it for Macroeconomics forces you to ask some hard questions. I use presalt oil investment in Brazil. Should Brazil have invested massively in educating the population with that capital (am talking investing the serious money or 240 billion in 4 years to lift pre_salt oil) or invested heavily in education?
Budget Deficit -in very simple terms- is nothing more than make ends meet in a household. If a person, at month's end need to borrow to make ends meet, it is running a deficit. That deficit has to be covered by someone whom, at month's end, had surplus money. Governments are the same. If their income, the taxes that you pay, can't cover government's expenses, it is running a budget deficit. It needs to borrow money to cover that deficit. Or in other terms: that government is living beyond its means.
How many posts you read daily from people criticizing their respective governments? How many tells: we need to pay more taxes to cover the deficit, else our children will have to pay. And people ove their children but do not think about the fact that they will inherit a mountain of debt. |
