Video: Government is spending way more than the economy can sustainably handle

/ June 29, 2021

Trying to use more gas than you have makes no sense on a road trip. But, replace the gas with money, and you have the U.S. government right now. Think of it this way: Our tax revenue should be enough “gas” to fund the necessary expenses for the government. But, Washington is spending. A lot. More than we ever have.

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2 thoughts on “Video: Government is spending way more than the economy can sustainably handle”

  2. Our government is, by design, deficit financed. That was to prevent the accumulation of vast treasuries accumulated by European monarchies in the eighteenth century and before. The idea was that government was wise enough to keep expenditures, except in the case of wars or emergencies, within the reasonable capacity of the tax base to repay the loans and interest. I doubt if the Founding Fathers envisioned a scenario in which the government would bid up its own bonds to keep yield at maturity below the inflation rate which would permit the government to repurchase its bonds at negative interest. The government derives revenue from taxing money changing hands. The more money it sucks out of the private sector the slower the velocity at which money changes hands, which is why tax increases always yield less return than anticipated. A recent Biden comment, that the increase in crime is caused by the increase in gun violence explains why government policies do not work. Programs based on this doctrine fail because premise is irrational! In reality, the increase in gun violence is the result, not the cause of the increase in crime. And the demonization, persecution and defunding of police is the reason for the increase in crime, which is also a significant burden on the economy. Suppression of crime, incarceration of perpetrators and protection of the public is a valid (and now neglected) primary function of government.

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