National Debt Considered Stupid

Devin Finbarr makes an astute point about national debt:
there is almost never a need for a country to go into debt. Debt is useful for entities that have a life cycle. People go into debt when young to buy a home, and then pay it back as they age. Companies go into debt to buy capital, and then pay it back as they mature. But a country (should) never die. There is no reason to pay for tomorrow what can be paid for today. The only reason ever to go into debt is if you have a tremendous, one time expense, that is large in relation to current income. Buying a home or a factory qualifies. But countries almost never have single one time expenses that are large in proportion to GDP. Thus they should never go into debt. Even a highway should be an operating expense for a country. The only time a country should go into debt is during war.
This observation can also be applied in reverse. If you know a state has debt, then either (a) it is in a war, or has just come out of a major war (5-10 years), or (b) it is irresponsible and poorly run.


Anonymous said...

or (c) because it can, and there's nothing you can do about it. So keep on paying your "fair share" while breaking it gently to your children exactly the kind of financial obligations to the State they have inherited. Freedom ain't free, you know.

P.S. Enjoy your work in IOZ and happy to see you reading Unamused too.

-- signed, blog stalker

rjp said...

Freedom ain't free, you know.

Yes it is.

For our bloated (literally) gigantic lazy ass welfare class.

rjp said...

Lets get this out there:
Steven Crowder: “Mr America”
By Powdered Zombies