Your Opinion: Public debt not a burden
Tuesday, March 5, 2013
Your family needs income to pay its debt. Our government does not. The government does not need cash on hand. It uses the computer and numbers. Government is the source of money, so it cannot run out. It can spend imprudently and cause inflation.
Public debt is not a burden on future generations. It does not have to be repaid and in practice it never will be paid back.
In the history of our nation, debt has always increased year to year. In surplus times, which are few, a recession followed.
The bonds China hoards are sterile. There is not much they can do with them. Its stock of bonds will grow. Will they trade for higher priced Euros or Greek bonds which is not a smart idea.
Going back to Social Security and Medicare they are transfer programs. They move resources within a society. They are sustainable. Social Security and Medicare replace private insurance with cheap and efficient public administration.
Increased private lending generates new tax revenue and smaller deficits. A credit collapse kills the tax base and generates more spending which is happening now.
Our big banks are not functional. They should be broken up, shrink the financial sector overall, prosecute frauds and create incentives for energy conservation, infrastructure and more. Public deficits are the only way to move toward economic growth until we have effective financial reform.
Are Republicans, conservatives and corporate greedsters putting out bologna? You decide.