Basic Finances

In order to remain fiscally responsible and free of debt, many American families and businesses adopt a simple principle: don't spend more than you take in.  It's simple finances.  School groups do it.  Lemonade stands do it. Lots of people do this.  The question remains: why doesn't the federal government do this?

The feds have been lax on what kind of debt they will allow, and both parties are to blame for this is some way or another.  Yes, Democrats traditionally win the yearly overspending contest, but Republicans insistence on only cutting spending while at the same time cutting taxes, often for the rich, wins no prize for its responsibility.  Both parties spend huge amounts on foreign wars.

It makes little sense to only cut spending or only raise taxes in order to cut the deficit.  Using only one of these methods ends up with a tougher strain on the middle class and/or Government with to little funding too effectively complete its job.  Exercising both options tempers the harshness.  Cutting taxes on the wealthiest Americans makes the most sense, since they are the ones that can afford it.  One thing that politicians must realize is that these taxes are never really going to redistribute the wealth.  When the rich are taxed more, they will still be rich.  When the middle class is taxed less, they are still in the middle class.

All this, though, does not take away the responsibility of the Federal Government to spend its money wisely.  Its our money.  Fiscal responsibility is imperative.  Cut programs that don't work and aren't effective, and reward programs that do more with less.  There are ways to do the same job with less money, and it still doesn't mean less workers.

Spending money wisely is basic economics; its about time Washington learned its lessons.