Is Government Spending Really That Bad?

And like Brad, was smart enough to leave the never ending circle jerk.

Damn, its like 7 -10 repeating topics, always and forever.

 

The Weimar Republic also had unlimited access to debt...so does Venezuela. Cash available to a society does need to expand as GDP expands. Something slightly in excess of GDP is what the Fed usually shoots for to assure ample money in the system. If they miss low it's a big problem and deflationary in nature. Cash goes into hiding. If they miss too high, cash becomes plentiful and chases goods causing prices to rise. If too too high the rise can be exponential. We're teetering on the too high border, however as the world is in a declining trend the world is using the US as a safe haven and moderating the effects. That's why trillion dollar deficits have been so mild. Wait a few years, if the world economy turns around hold on to your hat. The demand for US debt will sharply decline (ie the interest rates will have to go up to compensate) and the cost of such deficits in the future will be outrageous. We have an opportunity to curb our appetite now while it won't hurt so much, unfortunately our leaders are blinded by their petty needs to get re-elected or sell a misguided economic farce.
One thing I'll add, it's nearly impossible to eliminate an entitlement once it's in place (at least without a total system collapse). Just imagine what all the democrat giveaways will cost when the interest rates escalate? Of course we'll simply print the money going into the "too too high" zone.

 

Not once have you mentioned servicing the debt.
The larger the debt grows, the larger the monthly
payments become. That money comes right out of
taxes collected and so is unavailable to be spent on
all the things you seem to feel the "government"
(our money) needs to be spent on.
The debt payments will only increase.

 

I believe both world wars, especially the first, weren't fought so much to prevent Germans from conquering other peoples, but to prevent Germans from eliminating countries that had massive debts to the allies.

 

I haven't mentioned it because it doesn't matter. They just keep going deeper - essentially printing more money and kicking the can down the road. And they can keep doing it until an economic collapse and reset, at which point it'll be wiped clean with china holding the bag.

You can't think of this like it's a broke college kid trying to pay bills and plan for his future.

 

Unfortunately the bag of which you speak is the country we live in.....

 

Frank's departure was voluntary.

 

Sounds like a wonderful plan.
The failure is built right in.

 

I know. Are you saying that Brad's was not?

 

It's inevitable in every case. No system, no government, no society is perpetual.

 

IIRC it was not. I don't remember if it was a permaban or not.

 

Doesn't matter but I do miss his wit. Same with Knarf.

 

Seems like I remember one of the mods saying his ban was not permanent, but once it was over he chose not to return.

 

Do you realize that there was no deficit just a few decades ago?
And that was after paying the cost of WWII, including
rebuilding a number of other countries.
How on earth did we do that?

No, it is not inevitable unless you spend what you don't have.

 

The United States is one of the oldest continuously operating governments on the planet, and we’re only 240 years old. Why do you think that is?

 

The electorate are stupid

 

Wait a sec..........is he a CCS tech inspector?

 

That doesn't address the fact I mentioned but,
why do you think that is?

 

Yes, I believe he's been doing some of that.

 

It's because societies change with advances in technology and information. More people become more "aware" and they demand change.

As for the debt/deficit thing, it's a progression of business, mostly made possible by technology. Up until just a few decades ago, everything was still tracked via paper files, typewriters, and snail mail. With modern database systems, the internet, and the sheer volumes of information we can store and the speed at which we can access it, transactions and need for available liquid assets have outpaced the ability to physically transfer wealth. Low interest rates have also made it possible for ever more creative financiers to manipulate wealth and the market in the ever more competitive search for new ways to make money. There is also a "control" aspect to it, with the government/fed knowing that as long as people have significant debt hanging over their heads (mortgage, car, student loan, etc) they will be good little sheep who show up for work every day and keep in line. The government has taken advantage of this debt system to radically increase deficit spending which props up/grows the economy and makes for a more stable, predictable, controllable market and populace. It's the modern equivalent of "let them eat cake".