You know how you were saying that a big reason it’s so hard to convince people is because of the “pay to the order of” line on the check or the payroll deduction?
I found what seems to be a layman’s guide to the U.S. Budget (2002) at http://www.gpoaccess.gov/usbudget/fy02/pdf/guide.pdf.
I half expected part of it to be ‘in paradigm’, at least somewhat.
From page 22 Why a Budget Surplus is Important
|Should we worry about the possibility of a return to budget deficits? Deficits increase the Federal debt and, with it, the Government's obligation to pay interest. The more it must pay in interest, the less it has available to spend on education, defense, law enforcement, and other important services,…|
Wouldn’t it be impossible to have a productive discussion with the naysayer that would refer to this “.gov” pdf? It’s a effin DOT G-O-V publication for cryin out loud, oh my gosh!
This was my response:
The gov't pays interest the same way it makes payments for everything else: by crediting bank accounts and there is no limit to its ability to do that.
Not having "enough money" to pay for other things like defense, law enforcement, etc is a self-imposed political constraint.
Also, interest paid on debt becomes part of private sector income and private sector savings by definition. So to the extent that higher interest payments increase personal income, then people have more money to pay for education, health care, local law enforcement etc. and that means the Federal Gov't is needed less.
Whoever writes these things should be required to memorize the preamble to the Constitution, particularly the part that states, "...and promote the general welfare.."
You have women out of work getting into porn and becoming strippers to pay bills because the gov't failed in its basic responsibility of promoting the general welfare by sustaining output and employment. The result is crime and human degradation and a generally unhealthy corrosion of society.
I just listened to former Congressman Dick Armey talk about Shumpeter's principal of "creative destruction." I guess society needed more strippers and porn actresses because this is occurring naturally via the "market," and according to Armey the market is always the most efficient allocator of capital (in this case, human capital).
Most of this is happening because of an excessive and irrational focus on, "the money" as opposed to using the money to achieve our potential. There is an overzealous concern about an inflation that might happen sometime in the future, but zero concern for really bad things that are happening right now.