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IPFS News Link • Government Debt & Financing

Repudiate Government Debt: A Modest Solution

• Butler Shaffer via
"We cannot solve our problems with the same thinking we used when we created them."

~ Albert Einstein

Governments in America – at both the state and federal level – are in an escalating state of bankruptcy. Politicians, media hacks, and academicians propose the kinds of responses reminiscent of the classic definition of insanity: to keep repeating the same actions expecting a different result. Increase income taxes, cut spending, enact a federal sales tax, tax "junk food" and tanning salons, are just a few of the suggestions being made by those intent on recycling political solutions to politically-generated problems.

At the center of all this is a national debt that has arisen from a basic truth that statists prefer to ignore: human beings are much less thrifty in spending other people’s money than they are with their own. Let me control your checkbook, and I will come up with a much different pattern of expenditures than you would have. We are much more generous with the lives and property of others, a state of mind upon which political systems depend for their existence.