Debt and Budgets

Posted: July 2, 2011 in Musings
Tags: , ,

I’ve been following the matter of the U.S. federal debt for awhile now, keeping informed thanks to the Washington Post online, as we’re running up to the deadline for Congress to reach a deal on raising the legal debt limit, and the matter of debt and budgets is actually something that has caught my attention ever since the 2008 Presidential elections. This happened as Ron Paul made his case for fiscal stability, with the resounding words of his “Those who continue to live beyond their means will forever be destined to live beneath them.” having stuck with me ever since, their logic and pertinency apparent.

Now, I can see a multitude of various reasons why taking on debt can be a beneficial thing, depending on the specifics of a given circumstance, since it can enable one to utilize those otherwise inexistent resources towards accomplishments which would otherwise be unobtainable. This relies on one’s sense of footing in the world and one’s capabilities to act on that debt, to reap the gains and to never expose oneself to too much of a risk of being capsized by the debt.

If such large governments were corporations, I would be far less worried about them being authorized to take on debt in the name of their constituents. The level of accountability, the motivation to succeed, and the leeway in effecting administrative decisions embodied by free-market corporations is a vital list that an entity like the federal government of the United States certainly doesn’t exhibit.

Strip the federal government’s budget and let the elements comprising it be subjected to much more competition for the revenues that remain!

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