“Debt” and “deficit” are two totally different things.
If you borrow money, that’s debt. It falls in the “asset & liability” classification. It shows up in what is called the “balance sheet”.
If you spend more than you take in, that’s deficit. It falls in to the operating revenues category. It falls in what is called the “income statement”. If you spend less than you take in, then you generate a surplus … also known as a profit. [Non-profit organizations DO generate profits … but they call it a surplus.] A deficit is also called “loss”.
AND, there are two more ways to get rid of the debt and / or deficit. One is to grow the economy … [get rid of the “zero sum game” idea].
The other is to reduce tax RATES which stimulates economic growth and which results in greater total amounts of tax revenue collections.
Another is to sell assets to generate cash which can be used to retire debt from the balance sheet or to offset deficits / losses in the income statement.
Another is to reduce the size and economic burden of government. Lots and lots of ways of doing that, ranging from eliminating Medicaid fraud, which is a huge number … to streamlining military procurement, which adds to the cost of the stuff the military buys and greatly increases pipeline time. Or selling off assets … stockpiles of stuff left over from WW1 or old military bases that were originally established during the 1800’s but which are now prime real estate with no military value. Or quit filling the strategic petroleum reserve at super peak prices.
Government bureaucracy has no incentive to perform efficiently. If a corporation screws up, they go bankrupt and out of business, so they have an incentive to perform well. Competition, and all that. Which is why Boeing and Airbus keep building better and better airplanes and why Intel and AMD fight so hard to build better computer chips.
But, if a government bureaucracy overspends or fails … then they just get more money and more people.
You and I and most companies buy stuff from catalogs and price lists. We may even buy stuff second-hand… But the government writes new and original specifications for most of the things they buy. Writing specs takes months or years. And half the time, the procurement people don’t understand their own specs and don’t enforce them.
OR, they have a perfectly good asset, such as the C-5 cargo plane, which needs modern fuel-efficient engines [and because you can’t get parts for the old engines anymore unless they are custom made], but they gold plate the upgrade so that in addition to new engines they get all new electronics, all new electric motors, all new everydarnedthing, until the price for the upgrade is more than the cost of a new plane.
[don’tgetmestarted]
Hmmm, I wonder if someone in the white house has come up with a brilliant Machiavellian strategy of giving the Democrats a way to finally embrace Pro-Life? To make up that 9 trillion dollar deficit we only a few choices:
- Increase taxes and cut entitlements
- Devalue to the dollar and reduce the value of debt
- Increase the number of taxpayers
- Inflate ourselves out of debt (variation on 2)
- Sell more debt then at the first sign of foreign trade shenanigans declare all debt cancelled
- Won’t get anyone elected
- This has been happening but it can’t go much lower than it is
- This has been happening to some degree but it panics the markets
- They are on to us and stopped buying debt and are dumping dollars as fast as they can
This leaves 3) - Increase taxpayers. That means they have to legalize illegals, convert them to voting Democrats and then when they see that social services costs quadruple and they have no alternative but to start overthrowing Roe Vs. Wade and promote making more constituents, er, babies to increase the voter and tax pool.
So - its door #3! The Right to Life movement is destined to be high-jacked and made into the Every Life Deserves to Be Taxed movement.
James