It is apparent that the academics who are our legislators either don't understand or choose not to understand simple economics.
No individual, family, business, state or nation can spend more than they take in for very long. This is simple logic proven throughout history.
For people and businesses that go into deep debt, there is bankruptcy. Tragic relief, but at least there is a chance to start over.
For our 50 states, their legislators are required by law to pass a reasonable budget each year. State governments sell municipal bonds to cover manageable debt.
When the national debt is manageable, treasury does the same, but when it is so large that our gross national product no longer is able, no banks, no world organization can fund a debt of $16.5 trillion, projected to be $20 trillion by 2016. With no bailout likely, our federal agency will simply print enough money to pay the mounting interest and keep the country going.
The United States administration and Congress have saddled the nation with the result of seven decades of neglect. Refusing to face the impending doom, our interest rates on this debt are growing every year, as the debt grows and rates rise. Balancing our national budget may become impossible. Unnecessary regulation and far too heavy tax burdens have sent many creative businesses out of the country. Others are just closing their doors. Loss of entrepreneurs means less tax income and a wider spread between revenue in and revenue out.
We are taxed to the limit. We are left with inflation. If the producers no longer match the spenders, the printed money becomes watered, less valued. Foreign traders and bankers will cease their support. A worldwide depression will follow when this country can no longer pay our debt. No one will buy our bonds.
Let our citizens realize that we have chosen big government over free enterprise and personal liberty. Let them further realize that government creates nothing. All creation of wealth begins with Mother Nature, and follows the chain of development by private enterprise all the way to the users and buyers. These are the creators, the makers and the doers. All the rest of us are takers. We may be necessary too, but our survival is wholly dependent on those makers. That is basic economics.