Anonymous asked in Politics & GovernmentOther - Politics & Government · 10 years ago

what are the implications of a government budget deficit?

2 Answers

  • 10 years ago
    Favorite Answer

    Just another round of phony representative govt bamboozling the American public so the wealthy corporate elites & well connected members of govt can keep living large while the citizenship bears all burdens and pays for everything via Consumerism & Taxation.

    Look the corporate media & govt presents the 14.3 Trillion dollar deficit as if it was created by the people themselves to have living beyond means grand lifestyles. When in-Fact the only ones living large & passing all labor,taxation,operating cost onto the citizens is the big shot business owners & representative govt.

    Here is something they "the wealthy & Federal govt" don't want to talk about with the public, Our countries money & most of the industrialized nations currency is "FIAT" money meaning worthless paper & ink that everyone is being exploited over for greed.

    The existing combination of govt & corporate business ownership have such control over the citizens of USA frankly it's long been a Kleptocracy, a Kleptocracy that uses scare & fear tactics via media to produce cause and effect.

    While congress has the purse strings to wealth distribution, instead of changing the whole form of Trickle-around never down wealth economics that only benefits the few, they now are using the 14.3 Trillion dollar deficit scare tactic "THEY" created to take from the citizenship and make the citizenship "skin in the game responsible", even though no trade deals or legislation creating this scenario has been decided upon directly by the citizens. One would very foolish to think now is the time to start trusting what congress is really up to this time.

    Take close critical view of how Big business deceives consumers with deceptive advertising & fine print contracts people sign and don't read. All levels of govt & court systems 100% percent of the time protect/back-up the business community and NOT consumers,workers or the public. If you think Big business isn't the grandmasters of manipulating lawmakers and getting the masses to pay for everything then your NOT paying close enough attention to what Capitalism is.

  • 10 years ago

    when the accumulated government debt grows faster than the economy, it is a given that the interest required will become an ever increasing portion of the whole economy and therefore that taxes will have to be raised continuously.

    of course, raising taxes causes more and more people to dodge them, which lowers revenue and increases the deficit and debt even further.

    eventually you end up with the near unbelievable situation of Greece -- an estimated 35% of their entire economy is cash business that isn't reported to the government and on which taxes are not paid.

    so, in addition to the poor -- who don't owe any taxes, they have a further 1/3rd plus of the people refusing to pay the taxes. It becomes obvious that in Greek culture, not paying taxes is normal and paying taxes is something that only chumps do -- or those on salary who can't avoid the taxes.

    Greek government employees are the best paid in Europe [for their particular job], perhaps in part because the government's employees can't evade their taxes like most self-employed people do. Greece also has the highest proportion of self-employed people in Europe -- exactly so that they can ignore the taxes.

    So it should be no wonder that the prior Greek government lied to everyone about how much they were spending and borrowing and now the interest alone on the amounts they owe, even at a fairly reasonable 6% interest, would be 10% of the entire economy [and thus chew up 1/3rd of the government's entire revenues].

    {The Greek government can't borrow at 6%, of course; no one is that foolish. 12 percent and higher is the current norm and all loans available are for two years or less as all lenders are trying to avoid being stuck when the Greek government inevitably admits that it can not pay even the interest on the amounts owed.}


    how would you like that situation to become real in America?

    guess what -- we're headed directly toward it. And the biggest spending programs in our entire national budget are Medicare, Medicaid, Social Security, and Disability. [The military isn't in the top five -- despite what the leftists proclaim.]

    Source(s): grampa
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