I’m old enough to remember when the first trillion dollar debts created outrage. Now politicians of all sides routinely sign off on tens of trillion dollars of deficit spending. If people took the time to understand economics, they would understand how detrimental this is to their lives, and to future generations. Such spending devalues an already devalued currency. This allows government to spend even more recklessly (funding endless wars and everything else), and means your wealth is a fraction of what it could be. Thus you can’t provide for the future, or even maintain the highest quality of life in the present.
Here’s some quotes from Saifdean Ammous’ books, The Bitcoin Standard and The Fiat Standard, introducing the dangers of deficit spending, and how it has ruined our buying power and wealth. His peerless books are an education in the history of economics and how it was grossly manipulated by our leaders at our expense. Someday the bubble will burst. If you want to prevent that, and provide a better future for your descendants, read Ammous’ books and help forge a brighter path.
Why deficit spending is a terrible idea:
“One of the most mendacious fantasies that pervades Keynesian economic thought [and government economics] is the idea that the national debt ‘does not matter, since we owe it to ourselves.’ Only a…disciple of Keynes could fail to understand that this ‘ourselves’ is not one homogeneous blob but is differentiated into several generations – namely, the current ones which consume recklessly at the expense of future ones…this policy…was employed by the decadent emperors of Rome during its decline…
“Debt is the opposite of saving. If saving creates the possibility of capital accumulation and civilizational advance, debt is what can reverse it, through the reduction in capital stocks across generations…[today’s] generation has to work to pay off the growing interest on debt, working harder to fund entitlement programs they will barely get to enjoy while paying higher taxes and barely being able to save for their old age.”
Why massive government spending isn’t needed:
“The end of World War II and the dismantling of the New Deal meant the U.S. government cut its spending by an astonishing 75% between 1944 and 1948, and it removed most price controls for good measure. And yet, the U.S. economy witnessed an extraordinary boom during these years…[and millions of men from the war] were almost seamlessly absorbed into the labor force…”
What this has all done to the spending power of your money:
“The average U.S. home price in 1915 was $3500. In 2021 it was $269,039…Had the fiat [government issued money] standard adopted a fixed supply in 1914…the average American house would today cost $411.”
Do you choose collapse, or freedom from slavery?