Mr. President is on TV, says the failed to balance its budget over the last decade, confounding once again budget deficits with accumulated debt.
We all know the refrain: In 2000, there were budget surpluses as far as projections went.
Of course, those surpluses were minuscule compared to the outstanding stock of national debt: The debt was at about $6 trillion compared to about a $100 billion budget surplus.
Regardless, I fail to see how the government taking in more from its citizens than it needs to finance government expenditures is a good thing.
The problem that is facing the U.S. is unprecedented growth in the size of the Federal Government.
The lack of confidence in the future of the U.S. economy comes from the shadow the Federal Government casts upon every part of the private economy.
As such, not yielding to the President petulant demand that the U.S. government be allowed to borrow more and more would signal to the rest of the world that there are people serious about diminishing that shadow.
Mr. President constantly implies that borrowing more to pay current debts is a good idea. The rest of us know better: Paying one credit card bill using another credit card rarely results in eternal bliss.
When making the minimum payments on your cards becomes impossible without borrowing more, you have a problem.
That is the same problem the Federal Government is facing right now.
If Mr. President is serious about this issue, he and his pals in the Senate and the House would take serious actions to reduce spending today in return for a relaxation of the government's borrowing constraint.
Keep in mind that Warren Buffett does not have to make one more extra dollar to live comfortably many lifetimes over and as such can easily find ways to avoid additional income tax burden. You and I do not have that luxury. I'd rather Mr. Buffett make a boatload of money and pay 20% tax on it than him pay accountants a boatload of money to avoid a 70% tax rate.
Mr. President claims not allowing the Federal Government to grow without bounds will cause Armageddon. I welcome it.