“…..When the government engages in deficit spending it has to borrow money—part of it from foreign sources—and then charge future taxpayers to pay the interest on the borrowed money. As long as the government’s loans are not paid off, the taxpayers must continue paying interest on the debt year after year—just as an individual citizen would need to pay interest year after year on a credit card whose principal is never paid down.
The money that goes each year to pay the growing interest on the federal government’s credit card cannot be “invested” by private citizens and businesses to create jobs and grow the economy.
At different points in the press conference, Obama used forms of the words “invest” or “investment” to describe government spending on education, “renewable sources of energy,” health care reform, “health information technologies,” “American’s capacity for ingenuity and innovation,” science, technology and infrastructure. He referred to some of these items repeatedly as targets of the sort of government “investment” he wants to make…..”
This was a great article and really addresses the heart of the matter. The government cannot “invest” in the traditional business sense. Really Obama should be saying “Spend your children’s future tax dollars”. For every dollar the government spends it seems to balloon 4 fold so that 4 more dollars of tax revenue is spent on the original dollar spent. These “investments” don’t ever return the original “investment” and only cause Washington to spend more and more to support the original “investment”. Until Americans realize that Obama is playing the ultimate Ponzi scheme which will cause the world ruin for many generations – then we must continue shining that 500,000 watt lamp on the issue – damn the carbon emissions!!!!