Decisional choices; if a government has no money?

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Monte_RCMS

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If a government runs out of money, then how does it make choices?

In responding, please do not mention any political parties or mention the names of any individuals or political groups.

For example, if a state collects $10 billion in taxes each year and is unable to increase the amount, how should it apportion the tax revenues?

Can it go over the actual revenues and spend more than it takes in?
 
Monte_RCMS said:
If a government runs out of money, then how does it make choices?
Can it go over the actual revenues and spend more than it takes in?
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Is your question CAN it, or SHOULD it? Obviously they CAN – the federal government and the states have been doing it for years. You or I, on the other hand, would eventually end up in jail.
 
Yes, a government can spend more than it takes in, and governments including our own have been doing so for some time. The cost of doing it is price inflation or currency devaluation, both of which amount to an undeclared tax on the population. Ultimately, continuing such policies can lead to a currency crisis.
 
The government has been borrowing money from foreigners (so far over $4 trillion) and the rest from the FED through Treasury bond sales. Bernanke has been PRINTING money like crazy. We’ve had deficits since the Federal Reserve System was set up in 1914.
 
Monte_RCMS said:
If a
For example, if a state collects $10 billion in taxes each year and is unable to increase the amount, how should it apportion the tax revenues?

Can it go over the actual revenues and spend more than it takes in?
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yes, it can do so by borrowing, by printing more paper money, or by raising taxes
 
Although our (and other) Governments can and do go into debt, it has been reckless and irresponsible.

When a Government is in debt due to over-spending, waste, pork, and because it is larger than absolutely necessary, all suffer because the Government will not have the money to do what is required to properly serve its own citizens.

Just like anyone else, the Government is WRONG when it spends (and enters into contracts) beyond its means.

CCC - “2410 Promises must be kept and contracts strictly observed to the extent that the commitments made in them are morally just. A significant part of economic and social life depends on the honoring of contracts between physical or moral persons - commercial contracts of purchase or sale, rental or labor contracts. All contracts must be agreed to and executed in good faith.”

The Federal and State Governments have got to clean up their debt loads.
 
Governments, in themselves, have no money. They only obtain money by taking from the citizenry through taxation or fees, or by creating it out of thin air, as Ben Bernanke is fond of doing. But creating it out of thin air reduces the value of everyone’s money.

That’s why I find it difficult to enter into discussions about what government is obligated to provide for its citizens. It’s citizens are the only source of any government’s money. It’s not as though there is some inexhaustible supply of money which the government is at liberty to distribute. Citizens, acting through their government, can choose to distribute their money, but first the money has to earned by citizens in order for it to be available to the government.

So when we say that the government is trillions of dollars in debt, it means that you and I owe that money. There is no other source for it to be repaid.
 
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JimG said:
Governments, in themselves, have no money. They only obtain money by taking from the citizenry through taxation or fees, or by creating it out of thin air, as Ben Bernanke is fond of doing. But creating it out of thin air reduces the value of everyone’s money.

That’s why I find it difficult to enter into discussions about what government is obligated to provide for its citizens. It’s citizens are the only source of any government’s money. It’s not as though there is some inexhaustible supply of money which the government is at liberty to distribute. Citizens, acting through their government, can choose to distribute their money, but first the money has to earned by citizens in order for it to be available to the government.

So when we say that the government is trillions of dollars in debt, it means that you and I owe that money. There is no other source for it to be repaid.
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That is why incumbents need to be judged by voting citizens on fiscal responsibility, - rather than pork, waste, unnecessary big government etc.

The quote from Senator Colburn made me laugh - its so true. And I’m sure there are many other Americans will agree.
“This report confirms what most Americans assume about their government. We are spending trillions of dollars every year and nobody knows what we are doing…”
“The lengthy GAO report was mandated by Congress the last time it raised the debt limit in January 2010. Coburn said the report makes lawmakers look like … .” 👍

foxnews.com/politics/2011/03/01/government-waste-numbers-report-identifies-dozens-duplicative-programs/
 
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