Budgets have two primary activities: revenue (income) and costs (spending). A deficit occurs when spending exceeds income. Aren’t these two activities also important for a business’s bottom line? Aren’t these the same two premises important to our personal finances?
Many voters know that our federal government is inefficient and fiscally irresponsible. Senator McCain does blast earmarking, and to his defense, he’s hasn’t accepted earmarks. On the other hand, isn’t voting for a bill containing earmarks the same as accepting earmarks? Unquestionably yes. Senator McCain may not like pork, but he does enjoy the smell of bacon.
On the other hand, even if all earmarks were eliminated (and all else remained the same), a big annual deficit still exists, thus increasing the total debt. Senator Obama favors additional government for programs such as health care, meaning increased spending – thus the issue remains. Libertarians generally have a stronger stance regarding spending.
Many companies are in the news regarding layoffs to control spending. How often do we hear about the federal government downsizing? How often do congressional and White House staffs undergo a reduction in force?
The conservative Heritage Foundation provides the following graph showing spending over time. Consider going to the link to view other graphs about spending. (Once on the site, see the Next button in the lower right corner.)
Many people know that federal spending is out of control, yet voters continue favoring incumbents and their spending habits. Today, the American saving rate is paltry; actually negative the past several years. Therefore, is it possible that voters are electing officials with the similar fiscal policies as the ones practiced in their own lives?
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