Borrowing to stimulate?
By Paul Faber on February 6, 2008
Last week, President Bush and the House of Representatives put together a package designed to stimulate the economy, and the Senate is considering the package as we speak (if you read this aloud).
The package would cost the government approximately $150 billion, or about $500 for every human in the United States.
Then Monday, President Bush made his full budget proposal, and this full budget would come to about $3 trillion. The budget deficit would get even bigger than it is now. It would expand from the current $167 billion to more than $400 billion.
That is to say, President Bush is proposing that about 13 percent of the money needed would have to come from borrowing. The $150 billion stimulus package can be seen, then, as a part of that amount that we would be borrowing.
And we all know that, in a sense, the government seldom actually repays what it borrows. It does, of course, repay a specific debt -- we never have any trouble cashing in our savings bonds -- but, in a typical year, the government borrows from Peter to pay Paul, and it seldom actually pays down its debt. That means the interest just keeps mounting.
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Paul received his Ph.D. from the
University of Notre Dame. Currently Professor of Philosophy and the Dean of
the College of Arts and Sciences at FHSU, his own areas of research involve
ethics and the philosophy of religion.
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