Most countries spend more money than they generate in taxes. No reason to worry about it. Overspending has been going on forever. If it’s done properly, it does more good than harm.
Here’s how deficit spending should work: A hundred and fifty years ago, ninety out of every one hundred Americans were involved in producing food. Today, two people produce enough food for 100. What happens to the money that used to go to the 88 former food producers? The remaining two use it for efficient machinery and equipment. Smarter governments just printed more money.
What happened to the 88 people no longer needed for food production? They began moving to factories and jobs in cities. Then, the factories became increasingly automated. What had taken fifty people to produce soon needed five. Those five use some of the money that the other 45 used to make. How do the unemployed survive? Governments just print more money and get it to them.
As long as the printing presses do not run faster than costs are being cut, the nation’s economy is healthy.
Evil people, under the camouflage of environmentalism, are cheating. They make money without providing less expensive goods and services. Rather than let electricity be generated for a couple of cents per kilowatt hour, they use lies about Global Warming to justify charging people a dollar per kilowatt hour for wind power.
This hurts the poor very quickly. No one in the “Party of the Poor” ever complains. “Poor people would be more prosperous if they didn’t have to spend so much for electricity.” is unheard in every election. So, the poor get poorer.
The rest of the nation is also hurt. When energy is expensive, production efficiencies cannot increase.
This happens, and continues, when leaders are corrupted by bribes.
In fact, if the nation installed large nuclear generators, the cost of energy would plunge. Those people being subsidized by government payments could have much, much more. They are kept poor by lies: “We have to protect the environment and stop global warming.”
If a country can’t reduce costs, it can’t make welfare payments. That brings instability, often followed by the encouragement of riots. Disruption and collapse may follow.
Quick study: How deficit spending should work.
Let people be free to provide efficiencies. As costs go down, print money proportionally and dole it out. Things will go well for a very long time.
