Sen. Mary Landrieu, D-New Orleans, proposed a $250 billion aid package.
That would bring total government spending on Hurricane Katrina to over $320 billion. Where is the government getting all of this money? Deficit spending. However, this phrase is just a clever name for appropriating money that does not exist. It's as if the government is putting all this money on a credit card - the name on the credit card: U.S. Taxpayers.
Deficit spending will be paid for one of two ways:
1) An increase in taxes.
2) Increased inflation due to more U.S. dollars in the economy.
Don't let Congress and the Bush Administration fool you, this money is coming out of your pocket.
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2 comments:
I'm curious as how you would resolve the devestation that has been visited upon the victims of Hurricane Katrina if not with Government Funds?
The government would not build New Orleans with taxpayer money, likewise, it should not rebuild it with taxpayer money.
If private investors want to build houses and businesses in the city, then they have the right to do so. However, if the city is not rebuilt, that is because there is no economic justification to do so.
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