We've discussed the huge problem of the national debt here many times. The issue is that, right now, there is no alternative.
President Donald Trump and congressional Republicans gave Americans a sizable tax break, a perfectly appropriate means of jolting the economy — if it came with offsetting spending cuts. But spending increased. So in the most prosperous stretch we've enjoyed in decades, revenues still lag expenditures by $1 trillion a year.

That fiscal recklessness should buy the GOP a ticket out of Washington. But those who would replace Trump are campaigning on even more gluttony.

Nearly every Democrat has signed on to the Medicare for All plan.... a promise of universal child care... putting free college on the table....

And then there's the Green New Deal, which would blow the gates to socialism wide open. Implementation would require a doubling to quadrupling of federal expenditures.
I'd be surprised if it were as small a figure as quadruple. As we discussed recently, just two of the items -- refitting or replacing every building in America, and building a giant new high speed railroad network -- would require running the factories and lumber mills and diesel fuel refineries day and night all decade just to get the materials to do the jobs. If, indeed, it could be done even then.

1 comment:

raven said...

Always and everywhere, runaway inflation is the tool used to deal with government debt. The people who get rich, are the ones who get the money soonest and can put it into hard assets or a different currency. Venezuela is the template.