Thomas E. Woods, Jr., is the New York Times bestselling author of 11 books, including The Politically Incorrect Guide to American History and Meltdown (on the financial crisis.) A senior fellow of the Ludwig von Mises Institute, Woods has appeared on MSNBC, CNBC, FOX News, FOX Business, C-SPAN, Bloomberg Television, and hundreds of radio programs... (Read More)
But I like the way Steve Jones, a reader, explains it:
So many on the left believe that more government is the answer. When I tell them that our government spends twice what it gets in revenues and the Federal Reserve is constantly devaluating the dollar, their answer is more taxes. Then I explain that our federal government grows at a rate of $100 billion a month and all of the Obama tax increases raise $700 billion over 10 years which would only reduce that growth by about $5.8 billion a month. They say Obama will cut spending $3 trillion over 10 years. Then I say that cutting $3 trillion dollars over 10 years would just reduce government growth by $25 billion a month. Therefore, the government must still borrow to keep the government running and the debt continues to grow and the interest on that debt will consume all of the government’s revenue in the future, perhaps a decade or so from now leaving no money for anyone. They say nothing. Then the next day the whole thing starts over with total amnesia of the prior day’s conversation.