If you understand that then you understand everything. Deficit spending is difficult-to-see taxation. All this time that you enjoyed "low taxes" under high-spending Republican administrations and you thought it was so great ... well, you were being set up for paying those taxes in the future which is coming soon.
"'[A]n increase in spending coupled with lower tax collections is an INCREASE in taxes. AN INCREASE in taxes. NOT A TAX CUT. If I spend more money and collect less, the government is promising to collect more taxes in the future. It is not a tax cut. Not a tax cut. Not a tax cut. And when you don't cut rates but rather give people a lump sum of $500, there are no incentive effects other than to increase the probability that the US Treasury will be unable to honor its obligations in the future.'"
The governors of four states want a trillion dollars. I think there are about 100 million families in the US. That is a debt obligation of $10,000.00 per family. And it's not just a tax - because interest on the $10,000.00 has to be paid as well. $10k at a modest 5% interest for 30 years is 43,219.42. Ouch.
The National Debt Clock says each person (including babies) owes 34,840.14; that's not what the government owes - you are the government. It's what you owe. A family of 4.3 owes 149,812.60. (Let's call it $150K.)
Please ... please ... please ... we must stop printing money. If we stop now, maybe the economy will recover. We are a resilient nation. But we are not infinitely resilient. Please stop ...
© 2005-2008 Stephen Clarke-Willson, Ph.D. - All Rights Reserved.