The Budget Deficit

Many people are starting to think that the United States government is running the world’s largest Ponzi scheme.  What does this mean?  Every year we are borrowing more to money to pay for services we require and every year the debt gets bigger.  Each year the interest on the debt becomes a larger burden on the tax paying population of the United States.   However, the burden is obfuscated by the additional borrowing.  If we had to live with a balanced budget, the effects of all the interest we would pay would be clearly felt by the tax paying citizens of this nation.  The current debt situation is damaging the confidence of the typical American business which directly effects their desire to take risks and expand.  When people suspect that the future is gloomy they save and conserve.

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