Apology

[JohnnyD]

Originally Posted by detbuch

The federal budget and the private sector are two different things. While it is good for private sector entities to have a surplus, ideally (ha-ha) the federal gov. balance should be zero. If it goes below that line on the graph your probably spending too much (or, some would say, you're not taxing enough). If it goes above that line, you're probably taxing too much (or, some would say, you're not spending enough). Generally, the President proposes and the congress disposes when it comes to spending. Look to the congresses of those presidents to foot much of the blame or credit for budget graphs. And, more importantly, look at private sector economic graphs to tell a more important picture.

I can see your point, but I do think there are some issues with zero-balance budgeting. For example, without cash reserves, there is nothing to buffer a down economy when people aren't making as much money and as such, tax contributions are down. Also, massive, massive cash reserves are how the Chinese became the military super-power that they are now. This is how they have significantly increased their space exploration as well.

If we had at least some cash reserves, some of that could have gone towards funding the Iraq and Afghanistan wars to help offset the massive amount the average taxpayer is now on the hook for.

[detbuch]

Originally Posted by JohnnyD

I can see your point, but I do think there are some issues with zero-balance budgeting. For example, without cash reserves, there is nothing to buffer a down economy when people aren't making as much money and as such, tax contributions are down. Also, massive, massive cash reserves are how the Chinese became the military super-power that they are now. This is how they have significantly increased their space exploration as well.


The concept of a "rainy day fund" in reserve to bail out of a possible future emergency, much as it would be prudent in private endeavors, is inimical to the federal gov. "mind." Congress will find ways to spend surpluses (unless you can put them into a"lock box). The U.S. became a military super power not as a result of cash reserves, but as a policy and will to do so. We will do what is necessary if the people are behind it.

If we had at least some cash reserves, some of that could have gone towards funding the Iraq and Afghanistan wars to help offset the massive amount the average taxpayer is now on the hook for.

The question is not where the money comes from for these endeavors, but should we do them.

[JohnnyD]

Originally Posted by detbuch

The question is not where the money comes from for these endeavors, but should we do them.

I couldn't agree with you more, on both points.