Articles frequently appear decrying the dangers of deficits and accumulating public debt. The old saw goes that the deficit, that being public expenditures in excess of tax revenues, threatens and harms the financial well-being of a community or jurisdiction, burdening future taxpayers with accumulating public debts and obligations incurred for doubtless dubious public expenditures in the present.
I marvel that so many learned men and women continue to repeat the same blunder in reasoning upon this subject. But how could they not with the present public finance model plagued as it is with errant notions? The problem facing western societies is not ‘funds spent in excess of tax revenues’, but rather the massive waste one witnesses in all public spending regardless of whether funds are taxed or borrowed.
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