The Case for Fiscal Irresponsibility

There has been a lot of old-fashioned talk lately about the Federal Government’s borrowing habits. But it is common knowledge that taxes slow the economy down, whereas federal borrowing stimulates the economy. I therefore propose that all federal spending be financed by borrowing, and that all federal taxes be abolished.

One possible objection to this plan is that it might tend to increase interest rates and “crowd out” borrowing by private consumers and by businessmen. Actually, the Federal Government borrows at much lower rates than private industry, so it is clearly private industry that is responsible for high interest rates. Besides, if there isn’t enough money to go around, the obvious solution is to print more. I have conducted an informal survey on this issue and have been unable to find a single person who thought he had too much money. The Federal Reserve should get busy and remedy this money shortage.

WH

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Walter Howler

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There has been a lot of old-fashioned talk lately about the Federal Government’s borrowing habits. But it is common knowledge that taxes slow the economy down, whereas federal borrowing stimulates the economy. I therefore propose that all federal spending be financed by borrowing, and that all federal taxes be abolished.

One possible objection to this plan is that it might tend to increase interest rates and “crowd out” borrowing by private consumers and by businessmen. Actually, the Federal Government borrows at much lower rates than private industry, so it is clearly private industry that is responsible for high interest rates. Besides, if there isn’t enough money to go around, the obvious solution is to print more. I have conducted an informal survey on this issue and have been unable to find a single person who thought he had too much money. The Federal Reserve should get busy and remedy this money shortage.