~ Professor Antony Davies/Zero Hedge
… [edited. ~R]
It is an often cited perspective that Government has a debt problem.
While correct in fact, examining the data shows that debt is caused by deficits: leaving the question of what is to blame – too much spending or too little tax revenues?
The dramatic rise in spending per-capita by the government is exponentially larger than the rise in price levels, which pale in significance relatively.
The lesson: we don’t have a debt problem, we don’t even have a deficit problem, what we have is a spending problem – leaving a tax solution impotent.
An interesting conclusion on the day when the Fed once again promises to keep (interest) rates low forever, implicitly supporting a continuing government budget deficit.
On the the right track …
Even more directly – we don’t have a SPENDING problem, we have a GOVERNMENT problem.
Until we take a chainsaw to federal, state and local governments – we will ALWAYS have a spending problem.