-Implications of National Deficits and Debt-

Some Countries are experiencing Fiscal deficits because their Expenses are greater than Revenue. The knee jerk reaction is that expenses must be reduced, with no consideration to increasing revenue. The unfortunate truth is that in this time of world economic plight and blight any attempt to focus solely on reducing expenses will create additional hardships on the already suffering population.

It is wrong to encourage Fiscal mismanagement, and it is wrong to attempt to correct said irresponsibility on the backs of the poor of these countries. Two wrongs have never made a right. In this case, the second wrong of fixing National deficits on the backs of the poor could create in some countries unrest similar to that in the Middle East.

Simply put if Revenue is 100 Billion and Expenses are 150 Billion then we have a deficit of 50 Billion. Fixing the deficit by reducing expenses by 50 Billion seems like a logical action but that could create an issue in some countries because eliminating expenses means eliminating programs. Eliminating programs in some cases will mean eliminating jobs at some level. Governments cannot afford to contribute to the level of unemployment when citizens are expecting them to be part of the solution. Government or Private business is either part of the problem or part of the solution.

The fiscal responsible response to correcting national Deficits is a combination of reducing expenses, increasing revenue, and further searching the details of expenses to find and eliminate useless items. Increasing the deficit ceiling will only create an atmosphere that presumes continued deficits are not a serious matter. Continued deficits must be curtailed if there is a genuine interest by said countries in addressing National debt. A national deficit is the equivalent of a battle but in the same token, a National Debt is the war.

Increasing the debt ceiling is analogous to raising your credit limit at the company store to spend more knowing well that you are having issues making the minimum payment on the previous limit. The only accomplishment from such action is the debt getting another day older and deeper.

That’s all for this edition of Your Politics Our Hustle

A Comedian’s Take on the National Deficit