The nature and effect of government borrowing seems to confuse people. Most explanations of government borrowing tend to complicate the subject beyond comprehension. First, why does government borrowing occur? The government must have a source for every dollar it disburses. Taxes provide the money for most of those disbursements, but when the government spends more money … Continue reading Government Borrowing

Introduction Congress has returned to its frequent discussions about raising the debt ceiling. They believe, and rightly so, that most voters think the government runs like a business or individual. They make a big show of running around trying to figure out, “Where can we get the money to pay for all the spending?” But … Continue reading The Burden of Government Debt

My comments may prove elementary for many readers, but for others (and most politicians), they should prove highly informative. I frequently hear people refer to "debt and deficit" as if they were one thing. I don't know if they know the difference, but if they do, using them together may confuse others. The Distinction To … Continue reading Deficits and Debt Confusion