Imagine the day would come when state and local governments needed a bailout from the federal government. It has happened before but this time we need to examine popular wisdom.
WE have government to help the people. A caretaker with advanced safety nets. A moral purpose.
Yet, the entity we rely upon to create jobs relies on us and our employers for taxes.
No economic activity, no revenues, no creativity without the private sector.
So if you believe government can do anything or create anything then what do you think about what is happening now?
Government is dependent on the economy, it creates nothing and therefore cannot be relied upon for anything.
Local state and federal agencies are shut down and obviously non essential.
The government lending the government money puts the people on the hook for owing money to themselves.
So… how is that bad in the long term?
I mean I get that an increase in the money supply will cause inflation if the government is not careful, but seeing as how interest rates are basically at zero and the Federal Government, not the States, is the creator of the sovereign currency, how can McConnell justify being against a debt that is incurred to the American people by the American people and paid to the American people?
I don’t necessarily disagree, however I cannot fully answer that question. I was being facetious when saying that only now is the debt/deficit to high to continue federal spending. I don’t know why there is now concern when there hasn’t been for years. Seems like a time of crisis would be one of the few times to incur debt.
in the broad discussion of government debt comes the broad topic of what is the purpose of government. What is clear today is that without workers there is no government.
Government must take form people so it cannot both take and give.
