I'm not an economist, but I enjoy the subject...so much so that I was only one class short of a minor in economics in college. Maybe a better reason to comment on the subject comes simply from living on my own dime for nearly half of my life. There's nothing complicated here; most people do it. I have been through plenty of ups and downs in the pursuit of my dreams, so I have learned to save for that inevitable rainy day. I surely could borrow money for a while to improve my lifestyle, but the bill, or the law, will come sooner or later.
That is and has been the problem with our federal politicians for quite some time but especially within the past half year. In order to improve their lifestyle (translation: retaining power by buying votes), they are spending and proposing to spend money, at least for now, in one of the three ways...printing it versus borrowing it or taking it from taxpayers.
Taxing - This option requires taking money from those "evil" rich people now defined as people or companies making in excess of $250,000 per year. That would include my boss and pretty much anyone who owns a business and employs people. If you tax them too much, they most likely cut their highest expense...labor.
Borrowing - This option requires selling T-bills, bonds, CDs, etc., but that must eventually be repaid. Otherwise, why would people buy them? Unfortunately, they have to sell new ones just to repay the old ones.
Printing - Accelerate the presses! This will lead to inflation or the devaluing of the dollar. Think supply and demand, which even the dollar must obey; the greater the supply of money, the lower its value. This essentially amounts to a tax increase because the price of goods and services used by ALL people increases. What's the difference between a tax or a higher-priced good or service? I still see more money leaving my household for the same goods and services. Furthermore, how long will this inflationary period last and how high will be the inflation rate? I'll bet the more money they print, the longer the period and the higher the rate.
When I spend money I don't have, I alone bear the responsibility of repaying it. When politicians do so, we citizens bear that responsibility because they only have money by force of law. Whatever happened to pay-as-you-go? I guess that's the meaning of "collective responsibility".
Like most school districts across the country, Wichita Falls ISD is getting a cut of this $787,000,000,000 stimulus bill. I believe our cut is something like $5,700,000. I'm sure this was sold as something "for the children". Well, those children (mine) may very well be paying for that portion of the stimulus bill when they grow up and the bill comes due in the form of inflation. The sad truth is that, since they can't yet vote, they can rightly refer to it as "taxation without representation". Those words were part of a rallying cry for a revolution that led to the founding of this great country. Is it time for another one?
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