Time To Stop Wasting Everyone's Time, Bernie

[Wyrd of Gawd]

It's possible to reduce the deficit provided you cut non-mandatory spending.  In most cases that's not a good idea because you will end up hurting a lot of vulnerable people.

http://economicsonlinetutor.com/pics/Fed...20z002.png

The deficit exists because the Congress Critters won't raise taxes to cover all of their obligations.  So they borrow money to make up the difference and that's the deficit.  The more they borrow the greater the national debt becomes and because they are always borrowing money the national debt continues to grow and is never reduced.

Yeah, they'd rather raise the debt ceiling than do something to lower the debt.

Actually there's nothing wrong in having a large national debt.  It shows that the world has faith in your economy.  Plus it absorbs money that foreigners and institutions could use to improve their own national infrastructure instead of financing ours.  That results in lower taxes for us.  The problem that other countries have had with debt is that they didn't have the financial  systems in place to ensure that they could redeem the debt when it came due.  We don't have that problem at this time and if every thing stayed the same we could support an unlimited national debt.  But at some point we will hit a depression and default.  That might cause a few minor problems but as long as our nukes work we won't have to really get concerned over it.

[Chad32]

Yeah, they'd rather raise the debt ceiling than do something to lower the debt.

Actually there's nothing wrong in having a large national debt.  It shows that the world has faith in your economy.  Plus it absorbs money that foreigners and institutions could use to improve their own national infrastructure instead of financing ours.  That results in lower taxes for us.  The problem that other countries have had with debt is that they didn't have the financial  systems in place to ensure that they could redeem the debt when it came due.  We don't have that problem at this time and if every thing stayed the same we could support an unlimited national debt.  But at some point we will hit a depression and default.  That might cause a few minor problems but as long as our nukes work we won't have to really get concerned over it.

I'm not an economist, but it always baffled me when I see the debt growing, and people tell me it's a good thing. Usually when someone continually borrows money from me, without paying it back, i cut them off. But I guess the economy works differently than personal relationships.

[Gemini]

... I guess the economy works differently than personal relationships.

This is literally true.

[Wyrd of Gawd]

Actually there's nothing wrong in having a large national debt.  It shows that the world has faith in your economy.  Plus it absorbs money that foreigners and institutions could use to improve their own national infrastructure instead of financing ours.  That results in lower taxes for us.  The problem that other countries have had with debt is that they didn't have the financial  systems in place to ensure that they could redeem the debt when it came due.  We don't have that problem at this time and if every thing stayed the same we could support an unlimited national debt.  But at some point we will hit a depression and default.  That might cause a few minor problems but as long as our nukes work we won't have to really get concerned over it.

I'm not an economist, but it always baffled me when I see the debt growing, and people tell me it's a good thing. Usually when someone continually borrows money from me, without paying it back, i cut them off. But I guess the economy works differently than personal relationships.

But the difference is that the US government does in fact pay people back.  So it can run up the national debt to $900 Trillion without any problem as long as it redeems the debt when it comes due and the total amount never comes due at the same time.[size=x-large]Bernie understands that which is why he can offer such things as "free college'.  It would only cost people an additional dollar or so per year to make it happen.  The reason a lot of people are against such programs is because of racial animosity and they don't like the idea of black people benefitting from them.  The country is very racist and it affects everything across the board.