Send a Tweet
Most Popular Choices
Share on Facebook Share on Twitter Share on LinkedIn Share on Reddit Tell A Friend Printer Friendly Page Save As Favorite View Favorites
Exclusive to OpEdNews:
OpEdNews Op Eds

In praise of periodic deficit spending

By       Message Martin Carbone       (Page 1 of 1 pages)     Permalink    (# of views)   No comments

Related Topic(s): ; ; ; ; ; ; , Add Tags
Add to My Group(s)

View Ratings | Rate It

Author 24749
Become a Fan
  (1 fan)
- Advertisement -

1) Much has been written about (a) the need for a balanced government budget and (b) a refrain from deficit spending. Note a "balanced government budget" is not the same as "balanced government spending". While hardly anyone would argue against balanced government spending, it is fairly easy to argue that "deficit spending" can be a good thing if the deficits lead to worthwhile infrastructure projects that increase the wealth of the country.

2) Certainly it is worthwhile for the government to spend any amount of money if that spending leads to needed roads, airports, dams, dikes, waterways, agricultural research, education, internal peace, sewage treatment, conservation of our resources and all those other things that are hallmarks of a great nation.

3) Arguments are often made that the government should operate on a balanced budget just like all families operate on a balanced budget. That is, in my opinion, nonsense. Most successful families wisely go into debt to buy (invest in) their first house and thus operate on an unbalanced budget for 20 or more years as they build equity and wealth. Similarly -- the smartest families go into debt (invest in) to start businesses and provide for a good education for their children, thus unbalancing their budgets for some time. As long as the debt is aimed at good investments, it is not only wise -- but prudent and necessary.

4) It is just as wise for the government to spend more than it takes in as long as the deficit is for worthwhile projects.

- Advertisement -

5) In other words, "balanced spending" and a "balanced budget" are not the same thing. A "balanced spending" is generally good while a "balanced budget" can be stifling.


- Advertisement -

View Ratings | Rate It

Retired engineer, product and business developer, inventor (six patents). Currently (a) trying to completely understand our money and banking systems and (b) planning to pass that information to the American public. Photo is ca. (more...)

Share on Google Plus Submit to Twitter Add this Page to Facebook! Share on LinkedIn Pin It! Add this Page to Fark! Submit to Reddit Submit to Stumble Upon Share Author on Social Media   Go To Commenting

The views expressed herein are the sole responsibility of the author and do not necessarily reflect those of this website or its editors.

Writers Guidelines

Contact AuthorContact Author Contact EditorContact Editor Author PageView Authors' Articles

Most Popular Articles by this Author:     (View All Most Popular Articles by this Author)

Is cholesterol dangerous?

How to stymie corporate political lobbying and advertising

Solve our Home Mortgage, Money and Banking Problems through Community Banking Plan

How did Paper Money come to be?

I am Changing my mind on Fractional Reserve Banking

Questions About Money for the American Public