Sunday, March 17, 2013

Balancing the budget and limited government

A balanced budget is the most fundamental barrier to runaway government. A government that is limited to spending only what it taxes is severely limited in its expansion and intrusion into its citizens' lives.

Conversely, a government which is allowed to spend money without regard to any limitation, can be expected to become intrusive and oppressive.

If a group wants to limit the size, scope and particularly the growth of govevrnment, a good place to start is forcing it to balance its budget.

The economy is not driven by consumption

The economy is not driven by consumption. That is why Keyensian Economic theory does not work when applied to actual economic conditions. If consumption brought about economic growth, there would never be an abatement of economic expansion as the human desire to consume is never ending.