Wednesday, October 30, 2013

Why The Government Should Balance The Budget Now

I got a messaged today in response to my assertion that the government needs to balance the budget now.  The message read: "Because balancing the budget should be done when the economy is strong, not weak."

Here’s the deal:
Deficit spending = a budget that is not balanced = 1. money printing and/or 2. borrowing from foreign governments.  In the case of our government today it is a combination of both.
>>Money printing = inflation = value of our money gets destroyed (do not look at any governments inflation numbers, those statistics and inflation is much higher than they report.  See Shadowstats.com for actual inflation numbers).  
>>Borrowing from foreign governments = we have to repay the money we borrowed plus interest = high taxes now and future tax increases = less money for private businesses to invest.  
This is a recipe for a poor economy.  How long have we NOT balanced the budget? It's been around 50 years since we have a government that has consistently had a balanced budget or surplus.  This has been a huge drag on our economy.  No more kicking the can down the road for "when the economy is strong".  Deficits are part of the problem why our economy is messed up.  We need to demand balancing the budget now.  


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