acbytesla
Penultimate Amazing
- Joined
- Dec 14, 2012
- Messages
- 39,477
I do think context is important here.
I do not blame a government if they end up with a deficit (even an increasing one) during a recession. After all, revenues will automatically drop at those times (decreased tax revenue due to business contraction) and expenditures will increase. And, it should be pointed out that by the end of Obama's first term the deficit had peaked and was already heading back down.
As I pointed out, I dislike deficits when they occur during times of economic expansion (as is currently happening under Trump).
I think context is imperative.
Most people don't have a clue about economics. All deficits are no equal and deficits are not necessarily a bad thing. They can be a very good thing. I know that is hard to believe or understand when they are not likely to be good for us personally. But there is a huge difference between macroeconomics and our personal finances or even how a large corporation manages theirs. This country's wealth and power can be partially attributed to deficits.
Consider deficits to be investments. What matters is what the country is spending its money on. If we spend that money on education and infrastructure, that investment is likely to pay off.
Viewing the raw numbers of our National Debt is meaningless by itself. There is no context. Instead view deficits in relation to the GDP and who holds that debt.
