Make a Difference

Day: February 19, 2009

You Can’t Spend Your Way Out of Debt

Who would have guessed?

Alarmingly this simple fact still seems to be escaping the current US administration.

Kelsey Grammer is absolutely right. The ‘stimulus’ package is about rewarding people who are unproductive, or who have been irresponsible, by taking money from people who are productive and responsible.

This has two effects.

First it discourages responsibility. Why should states, corporations or individuals bother to save money, spend wisely and live within their means, if when they do so money is taken from them to give to states, corporations and individuals who have not?

Secondly, taking money from those who are productive, who are generating wealth, investment and employment, means that investment and employment will be reduced. And this in turn means the recession will be deepened and prolonged. And this means that the people who are most in need will suffer more and longer.

You can’t spend your way out of debt. Even when it is other people’s money you are spending.

I’m Ba-ack!

I am still In Wanganui in New Zealand, still caring for Amanda. But we seem to have settled into a routine now, and I have found a decently quick internet caff, so posting should be back to normal over the next few days.

Tough Times Make You Fat

According to the Australian ABC, MacDonalds is doing well in Australia, so soon everyone will be obese.

This is another one of those increasingly frequent (especially when it comes to health and climate scares), headlines that look alarming, but when you read the story, you find that nothing has happened at all. It’s just some ‘expert’ saying ‘If this happens, then this might happen.’

Let me know when it does, and then I’ll start worrying.

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