As people have to balance their budget, they have to cut expenses or increase income or get some loan. Cutting expenses to the bone can be done but how far you can go, you cannot tell your kid you don’t have any money for food or just some entertainment, increasing income by finding another job is getting harder and harder and to get a loan is just forget about it right now. So if we put the same scenario to the Federal budget, we will see that cutting expenses can be done if the politicians can find the will to do it, raising taxes can raise revenue but how far to raise taxes before people revolt that is the tricky part and to get some loan right now the world is lending the U.S. enormous sums of money because they believe that we will be able to pay but a time will come (fast approaching) when the debt will be so big that they will be reluctant to lend more without seeing some action on the part of the U.S. to trim its expenses and raise its revenue.
If the politicians can only see the long term consequences of this threat to the
We really need to start balancing our Federal Budget not some time in the future but now. As I said before I will be talking a lot about the budget deficits in my future posts so stay tuned and keep on reading.