If Not Now, When?

The persistent theme I see recited by liberals says that now is the wrong time to cut back on government spending, because doing so will send the economy into recession. I have just one question. If that is so, when is the right time? So far, politicians have seen fit to increase spending under any and all economic circumstances. Even now, the “cutbacks” being discussed are reductions in increases, not actual decreases.

The result is inevitable – growing debt faster than GDP will result in eventual economic collapse. And past a certain debt level, which studies have shown is around 80% of GDP, adding debt decreases the economy’s ability to grow, further compounding the problem.

It is true – cutting government spending will reduce consumption. Hardly a difficult conclusion, since they are one and the same. The question is, do we want to do it in a calm and controlled fashion or have to desperately chase a moving target lower, as the Greeks are being forced to do? We can choose to do it now. In the future, we will not have any choice.

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