Once-Mighty Deficit Hawks Hardly Chirp
Posted by CircuitGuy 6 years, 6 months ago to Economics
We're like the Roman Empire.
"This month, the majority of Republicans in the House and the Senate voted to raise the debt limit without doing anything to rein in spending.
"Republican lawmakers are pushing to increase military spending by tens of billions of dollars, topping even Mr. Trump’s request for a beefed-up military. Democrats are sharing in the fiscal intemperance, lining up behind a “Medicare for all” proposal despite having no definitive plan for how to pay for universal, government-provided health coverage.
"And as Congress mulls large tax cuts, the tabs for Hurricanes Harvey, Irma and Maria keep rising."
"The budget office forecasts that deficits will total $10.1 trillion over the next decade. The deficit is expected to top $1 trillion a year in 2022 and keep growing from there. Federal debt held by the public is at the highest level since shortly after World War II, at 77 percent of the gross domestic product."
"This month, the majority of Republicans in the House and the Senate voted to raise the debt limit without doing anything to rein in spending.
"Republican lawmakers are pushing to increase military spending by tens of billions of dollars, topping even Mr. Trump’s request for a beefed-up military. Democrats are sharing in the fiscal intemperance, lining up behind a “Medicare for all” proposal despite having no definitive plan for how to pay for universal, government-provided health coverage.
"And as Congress mulls large tax cuts, the tabs for Hurricanes Harvey, Irma and Maria keep rising."
"The budget office forecasts that deficits will total $10.1 trillion over the next decade. The deficit is expected to top $1 trillion a year in 2022 and keep growing from there. Federal debt held by the public is at the highest level since shortly after World War II, at 77 percent of the gross domestic product."
SOURCE URL: https://nyti.ms/2fASVrD
Many conservatives and libertarians favor money “backed” by government bonds, on the moral ground that such money is somehow more “honest” and “legitimate”. But is it really? How “moral” is it for a government to base its monetary system on the ability to impose burdensome financial obligations on present and future taxpayers? In the end, debt-based fiat money is nothing more than money backed by forced labor. Is this moral?
Debt-based fiat money requires us to pay interest on the national debt, a drain on our income and wealth that currently amounts to a steep $2,000 per year for each and every adult American! Meanwhile, essential government services such as court systems are “crowded out” by the need to service the national debt. Is it moral for a government to force its citizens to pay heavily for the “privilege” of using a debt-based currency, while shortchanging them in the delivery of essential services?
The growth of the national debt creates psychological effects that discourage virtues such as prudence, productiveness and thrift. Such effects do not show up in economic statistics, but they are real nonetheless. Why strive to get out of personal debt if you remain on the hook for your “share” of a growing government debt? Why strive to be more productive when the government demands an ever-increasing percentage of your earnings to service this debt?
With debt-free money, these serious moral issues do not arise. Debt-free money does not burden future generations with unchosen obligations. It does not force taxpayers to make higher and higher interest payments on a growing national debt. It does not prevent the government from fulfilling its obligation to adequately fund essential services. It does not give the government an excuse to keep taxes high. These are just a few examples of why, in moral terms, debt-free fiat money causes less harm to free markets and individual liberty than debt-based fiat money.
That's weird and interesting.
Fiat money is the only money I understand. The whole concept of money is a medium of exchange. The whole concept is I don't want to carry around liters of brandy or notes promising liters of brandy that are stored in a warehouse. I want to trade value. The medium of exchange just has to be accepted by all market participants. If it actually had value, that presents problems. Fiat money has its own problems too though. Nothing's perfect. I prefer fiat money, though, to trading things of value.
Then he agreed to a tax cut with no spending cut.
That proves he is right: DC is the greatest threat to America.
Time for a strike.