I haven’t been able to catch President Obama’s budget proposal or reaction to Republican budget proposals — well just a tiny bit — because I have been busy working and I’m in a spot where my mobile internet connection is poor, but really, I know it all still boils down to a difference in philosophy on the role of government and whether things should work for the people in general or just the capitalists who run things. I know that people who see themselves as business persons or investors or just smart with money look down their noses at ignorant folks who have little to no investments and basically depend upon a pay check.
I blogged previously, that is I suggested that maybe no one should work for anyone, that maybe we should all be capitalists.
But seriously, here is something that occurs to me: why should the government be borrowing money? Should not the money be raised in taxes? I know that the federal government has found it necessary in times past to borrow money for emergencies, namely war (but that should be when we are actually directly attacked, not when we simply choose to make war for geopolitical purposes). But to fund things outside of emergencies seems unwise. And, it is just a plain bad thing to stick us all, and those to come, with a mountain of interest to pay.
I am not at all sure how anyone thinks the multi-trillion dollar debt can ever be paid, but I did hear that most of they money the government now takes in, or at least in the near future, will go to just servicing the debt.
Someone was also trying to explain that cutting expenditures in and of itself does nothing to pay off the existing debt. It seems to me that the government might be forced to levy a special tax just to make payments on the debt.
I know not nearly enough on economics, but I do know that generally the people who lend the money have the upper hand over the people who borrow it.
Liberals are guilty of expecting the government to magically find money for expansive (and expensive) social programs. Conservatives are guilty of supporting massive government borrowing in favor of holding down taxes and of supporting wars that are not supported by taxes.
I also heard a conservative talk show host claim that you can only raise taxes so high before people resist by taking their business elsewhere. That may be true, but don’t let the door hit you on the way out of the country, I say. And I do not mean I support high taxes, but I do think that businesses people cannot expect America to be there for them if they are not there for it.
And I don’t favor soaking the rich. I would favor a much simpler tax code, and possibly a flat tax, devoid of most deductions and loopholes, and a ban on government borrowing, except in emergencies.
But then what do I know? But then what do our current crop of leaders know?