By Steven Marc Brooks, Economist, Letter to the Editor of the Kansas City Star
The federal government could not have wrecked the economy if only a few simple, common sense measures were employed. First – government should not be allowed to print money through the Fed or any other means. This is what makes possible endless wars and subsidies to voting blocks to re-elect politicians. Second – all government accounting should be on the books. We in business employ accrual accounting which takes into account future liabilities of all kinds. There would be no entitlement crisis if transparent accounting and limits to borrowing were enforced. Third – the Federal government should be limited in what it can borrow from all sources. Else, they will borrow to fund boondoggles again to buy votes. The government must be made to rely on taxation to finance its grand plans. If we had been required to raise taxes to fund entitlements, required to pay in current dollars for wars and had to pony up for subsidies to our fellow citizens we would have rebelled at the increase in the tax burden and put congress’ feet to the fire. Instead, we have allowed liabilities of all kinds to accrue beyond what we can pay and on which we will default.
The federal government could not have wrecked the economy if only a few simple, common sense measures were employed. First – government should not be allowed to print money through the Fed or any other means. This is what makes possible endless wars and subsidies to voting blocks to re-elect politicians. Second – all government accounting should be on the books. We in business employ accrual accounting which takes into account future liabilities of all kinds. There would be no entitlement crisis if transparent accounting and limits to borrowing were enforced. Third – the Federal government should be limited in what it can borrow from all sources. Else, they will borrow to fund boondoggles again to buy votes. The government must be made to rely on taxation to finance its grand plans. If we had been required to raise taxes to fund entitlements, required to pay in current dollars for wars and had to pony up for subsidies to our fellow citizens we would have rebelled at the increase in the tax burden and put congress’ feet to the fire. Instead, we have allowed liabilities of all kinds to accrue beyond what we can pay and on which we will default.
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