Read this Post, and ask yourself How we can move away from a polarized, political position on the deficit. Both Democrats and Republicans yodel that it is all about Taxes, but this is only half of the equation. There are a number of ways to look at the federal debt and deficits, and I think it is time to consider these conceptions. There is the fundamentalist view, where the federal debt is considered an obligation which must be repaid; this view would declare that all Taxes which are eschewed Today must be added to already high sustained Taxes in the future in order to repay the debt. The devolvement of this conceptualism insists that economic performance in the future must be suppressed, in order to promote greater enhancement of the economy at present; if and only if, of course, One believes that Taxation actually acts as a detriment to economic performance.
Another conceptualism of the federal debt and deficit consists of the idea that the later acts as an Operating Budget of Government and economy, and will consistently expand as the economy and Government grows. This view is most prevalent within the Business community, who have become quite comfortable about risking other peoples’ money on their own risk ventures. They have derived great experience in limiting their own risk to losing control of their own ventures when such ventures enter Receivership, carefully protecting their own assets. There is a relative degree of doubt that such a business model will work beneficially within the parameters of a Government bankruptcy.
The above are probably the main views held concerning the federal debt and the deficit. There is a Concept underlying either view, which is the statement of ‘Screw the Children’. Neither will likely work at all well in the long-run, and violent dislocations are bound to descend upon Us. I would suggest an alternate course, but What? My basic ground suggestion would be to collect such Taxes as necessary to pay for ongoing Government services, and only grant deductions and Tax breaks after Tax Returns have been filed, and then only in the form of US Treasuries. It does two great things, insisting that Taxpayers take responsibility for political Spending, and forcing them to take a Stake in the success of the Debt acquisition. All Participants must exhibit concern on the success of the Treasuries markets. lgl