Why governments are not like households and should not behave like them

[skepticscott]

31. The "most affluent economy in the world" is paying its bills

by borrowing money from less affluent economies. Whether we COULD generate more income and eliminate the yearly deficit by levying new or increased taxes is irrelevant, until we actually start doing it. Until then, the debt keeps growing without limit, until servicing the interest eats up the whole budget. At that point, the options are default or rampant inflation.

Deficit spending is simply not sustainable forever, not even for governments. We keep kicking the can down the road, but eventually the road comes to an end. At some point, you have to start living within your means, whether that involves spending less or taking in more. No getting around the cold equations.