An alternative to popular faith
Here is one of the many reasons federal deficit spending is absolutely necessary — even more so, now — and why trying to reduce the deficit is dangerous and imprudent.
Source: Joe Weisenthal and Kamelia Angelova, Clusterstock – Business Insider, September 9, 2009
Economic growth requires spending by consumers, businesses, local governments and the federal government. When consumers aren’t spending, businesses also spend less. The federal government must spend even more to take up the slack.
Rodger Malcolm Mitchell
You are right. In the current system, personal debt is the only thing that keeps our economy afloat. What I am saying is let the other guy go in debt for the sake of the economy. I am going to stay away from debt. Continuous consumption of personal debt is not sustainable. Maybe it is time to move to a system that doesn’t rely on convincing more people to take out more personal loans to ensure prosperity for the whole?
Agreed, BDO.
The system would be for the government to add the needed money, and not need to rely so much on the consumer. The government is the only entity that easily can support debt and not worry about bankruptcy.
Rodger Malcolm Mitchell