Friday, April 10, 2009

The deficit

 I am an accounting major, I am an American citizen, I am tired of hearing about the national debt. If you have been following the news of late you have heard of the 192 billion dollar deficit the Obama administration has racked up. While it is true that a deficit is not ideal for a national economy it is not however rare or really that important. There is a maxim along the lines of "you must spend money to make money" interesting dont you think? 

Our market economy is very complex and generally based on consumer confidence, this can make things very fickle the primary problem is that the government creates policy in order to limit or stimulate things like lending, manufacturing taxes and guidelines to raise or lower unemployment rates these are just a few of policies that effect our economy and the way our banks function. Why is this a problem? Well there is no flaw in the way our government spends to stimulate or contract monetary policy the problem arises when we try and play the government. 

The playing of our government is really when those in power or seeking power publish articles or news stories vilifying budget deficits or government spending solely to weaken consumer confidence so at election time we the people have a lesser public opinion of those currently making our policy. So what can we do? I think it is important that we look at more than just the headlines of deficit and wasteful spending, I think we need to look at where we are as a nation and where we want to be and choose leadership and policy makers based on intelligent decision rather than just transferring wealth from party to party.  

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