This is a philosophy that has made many people wealthy. It is a philosophy that has been lost in America today.
Spending future earnings today on consumer items is foolhardy and a sure way to financial ruin. Whether an individual, a business, or a government bases their current expenditures on income not yet earned, the outcome is the same: disaster.
When creating debt, there must be a net gain when the debt is finally paid. In government funded programs like education, building infrastructure, or national security there is a net gain in an expanded economy and a larger tax base.
Pork barrel projects and entitlement programs, however, create a debt for which there is no return.
Runaway spending in both the private level and government level has created debt in the USA equal to $1.01 for every $1 of assets. When those numbers are put on a balance sheet, any CPA will tell you your bankrupt.
I would be interested in knowing just how those people who think the USA can take on the cost of a national health care system expect to finance the program. Health care cost accounts for 17% of the gross national product in America. Just how is a bankrupt system going to pay for such a huge expenditure that gives no net return.
2007-02-14
06:40:26
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