Another letter was submitted about the lack of a budget for 4 years and how when measured to a household, farm, business budget the government would find itself out of business. Constitutionally the federal government can do the following: Regulate trade even between states, levy and collect taxes, create money plus standardized the weight and measure of that money. Name one head of household who can.
The only time in American history did the federal government retire the debt was in 1835 and kept a surplus for the next 2 years. In 1837, a depression wiped out the surplus and put the federal government back into debt and the federal has never achieved that again. Historically ever time the federal government makes substantial drop in debt a depression happens. The federal government in effect has run a budget deficit for over 230 years. How is that unsustainable? Can you name a head of household who has that long a budget record?
The federal government is the issuer of our currency and it's IOUs, in the form of treasury bonds and such, are always accepted in payment. Can a head of household? The government also covers bank deposits and credits the reserves of those banks. That is why the government is able to borrow and spend as it does. Can a head of household?
The impasse, because that is what it is, happened because no one in Congress is willing to compromise. One side only sees tax cuts and cuts in spending and entitlements. The other side only sees increasing revenue along with cuts in spending but mostly in the military. The budget is not close to being a household budget and Congress is unwilling to compromise on what needs to be done with the budget.
Charles M. Reeder
Submitted by Virtual Newsroom