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Whats the point of having a DEBT 'CEILING' if they keep raising it??
You bring up a great point! There really is no logical reason to have a debt ceiling and with the exception of Denmark and the USA, no country has one.
And you borrow but are not concerned with interest and paying back your loans? Even a household has to be concerned with debt.
You do realize that the government is paying the same amount of dollars in interest that it did in 2007, right?
From a macroeconomic standpoint, trying to reduce the debt now, which would mean running a surplus in a weak economy, would cause a recession that would undermine deficit reduction targets. It is ar better to what until the nation is closer to full employment.
The national economy is not a household. If a household cuts spending it has little singular effect on the economy but it saves. If everyone cuts spending we have a depression.
Moreover, the deficit has already been cut dramatically.
You have to look at revenue, cost and governance of expenditures. Borrowing in itself, is not bad (although, it very well can be).
Borrowing in itself is not bad, it is actually a tool if you understand how debt work, but obviously, our government don't.
If you are a business as claimed, then you know running a business on debt is bad. It is bad because your creditor will one day stop the credit flowing and you will have to liquidated your business.
Of course, if you pay yourself really well (transfer business asset to personal) like the politicians do to themselves, who give a eff if the country go default. It screws the creditors and the politicians is not even the one who is paying the bill. Just kick the can down the road and let other worry about the problem.
You do realize that the government is paying the same amount of dollars in interest that it did in 2007, right?
From a macroeconomic standpoint, trying to reduce the debt now, which would mean running a surplus in a weak economy, would cause a recession that would undermine deficit reduction targets. It is ar better to what until the nation is closer to full employment.
The national economy is not a household. If a household cuts spending it has little singular effect on the economy but it saves. If everyone cuts spending we have a depression.
Moreover, the deficit has already been cut dramatically.
No the deficit go. If I remembered correctly, the deficit was 12 trillions when Obama took over in 2008, now over 17 trillions. This is the "official" number.
The best way to stimulate an economy is cut tax and reduce regulations. I am a small business owner and I can't tell you how much paper work I have to do every day just to make sure I keep track of all my record and I didn't break any regulation. More than 10% of my time is use to keep up with regulation and paper work. I didn't even know it can be so frustrated just wanted to pay my tax and move on.
"Zo is wondering if he’s experiencing Deja Vu, because he could have sworn this has happened before. Many times actually. The government digs us deeper in to debt and deficit, but it’s ok, as long as they raise our debt ceiling? Is the government going to demonstrate insanity by doing the same thing over and over again expecting a different result, or will they stop relying on raising the debt ceiling, and start showing fiscal sanity? Hear more in this Zo Nation"
Zo is so right.
Zo is an idiot. Zo doesn't talk about what would actually happen if the government wasn't borrowing money right now. Some people around here should come up with their own opinions.
Zo is an idiot. Zo doesn't talk about what would actually happen if the government wasn't borrowing money right now. Some people around here should come up with their own opinions.
We want all this terrific stuff, but we don't make enough to pay for it. I get it
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