Las Vegas Sun

March 28, 2024

Deficit spending is never good for an economy

The New York Times editorial reprinted in Saturday’s Las Vegas Sun, “The Wrong Message on Deficits,” argues that slashing budgets is the wrong thing to do during times of high unemployment and a poor economy. This ignores the fact that government borrowing subtracts money from the money supply, which would otherwise be used by the private sector for investment to create jobs and boost the economy.

And governmental borrowing and interest must be repaid sometime by the taxpayers. Private sector borrowing is repaid from the profits derived from the increased business, and the taxpayer is not involved.

The perennial question is which is better for economic recovery: central planners in government or private business? History and results from current efforts show that budgets deficits do not work.

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