Deficit Spending Quiz Time…

“Suppose that year after year, you spend more than you earn. You are worried that you’ve become fiscally irresponsible. Which of the following could be paths back to fiscal sanity for your household?

“A) Spend less.

“B) Earn more.

“C) Stop at the ATM more often so you’ll have more cash in your pocket.

“Do we all understand why C is a really bad answer? Good. Now let’s try another one.

“Suppose that year after year, your government spends more than it collects in taxes. You are worried that it’s become fiscally irresponsible. Which of the following could be a path back to fiscal sanity for your government?

“A) Spend less.

“B) Collect more tax revenue.”

Is collecting taxes like a government earning more? For the answer, go here.

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