Fiscal irresponsibility could be the ruination of our economy and country but two things have occurred to me.
* Our federal government is borrowing at a rate barely over 1 percent interest. The inflation rate is higher than the interest rate. The normal effect of excessive borrowing will be minimized until interest rates begin to rise again. And our government controls the interest rates, doesn't it?
* When the government is spending borrowed money, it is in effect increasing the money supply. We are taught in economics class that increasing the money supply causes inflationary pressure on the economy.
Inflation hurts the poor much more than it hurts the producers. In fact, the inflation can benefit the producers to some degree in the form of higher prices. Even as the volume or frequency of business drops the margins increase.
In theory this excessive borrowing will bring us to a collapse. Surely our economy and society can not bear this heavy burden, right? However, as we approach the point of collapse the inflation caused by the policies driving the trend will put pressure on the very folks who are supporting the trend. Do you think they will finally change their mind about which way we need to go?
As we stand today, inflation is not too bad. I think we need to hope it stays this low. But I do think we can all relax a bit. The sky is not falling today. The sun will rise tomorrow.