Most
Americans may not be too concerned about heavy government
financing by enormous borrowing, the equivalent of printing money, plus enormous outstanding debt that has to be constantly financed.
An
economics basic: Funds for financing business and government are in a
Zero Sum game. Funds needed by government to finance huge debt have
to displace funds needed by industry. Economists of every stripe
concede that. This problem will get worse when government has to
raise its cost of borrowing from currently very low to more
realistic, higher levels.
Governments
can only overcome the accommodation for extraordinary spending and
the potential problems they entail, by expanding the economy.
But
if the government is heavily taxing while borrowing and literally
printing money, it will be curtailing that necessary economic
expansion.
To sum up: You
cannot borrow forever without hurting expansion because you crowd out
funds required for private business to operate normally. There will
be business stagnation and inflation. Proof has been shown over and
over for centuries. (See the Earl J. Weinreb NewsHole® comments and
@BusinessNewshole tweets.)
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