Thursday, October 14, 2010

In “Deficits and Depression” by Victor Davis Hanson the author explains four resons why voters are enraged and depressed by the deficit. The deficit has grown during 8 years before Obama from $3.3 trillion to $6.3 trillion, but under Obama in just one year it has grown $2.5 trillion! This enrages the voters because money is being given out without thought to whose it was originally. They feel that increases in taxes won’t cover the debt (as it did under Clinton when he balanced the budget), that explanations don’t help pay their bills, and they fear something worse it to come.

I, too, am angry over the huge deficit because the “stimulus’ spending has potentially ruined my future. But I don’t’ necessarily blame Obama just as much as if I would blame a kid for not knowing what Schroedinger's cat is.

If the U.S. needs to borrow more money to pay its debt it may do so from China, a country that has a lot of cash on hand from trade surplus with the U.S. What would it mean to the world if China, a Communist country, if funding a democracy? It would raise the status of China and its policies.

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