Monday, August 8, 2011

How is an exploding budget deficit fiscal responsiblity?

The biggest problem with incremental debt increase is the size of the current increment. You may not understand some things about national economics. The debt and the deficit are not the same thing. A deficit is money spent above what was budgeted for a fiscal year. A surplus is what happens when you spend less than what was budgeted for a fiscal year. That is all. The debt is what is currently owed as a result of all unfunded spending. To create a surplus you simply say were going to spend 2 billion, get it approved, and then spend only 1 billion. It takes a little preplanning but it doesn't take a genius. You can do it by failing to replenish ammunition for war ships.

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