This reminds us of a Monty Python sketch, but then most things do. This time we're reminded of the race of idiots as performed on the BBC--and as soon as the pistol is fired to start the contest, the idiots run off in all directions, some even backward.
Except that is funny. The latest news most assuredly wasn't.
The United States has a president who campaigned on many things, one of which was his ability to eliminate the federal deficit through deal-making and growing the economy. Also, the country has a national legislature full of debt scolds--aka Republicans--who now control at least one-half of the legislative branch, and occasionally both halves.
Still, the deficit and the debt grows.
The other day the numbers came in for October, the first month in the nation's fiscal year. And this October, the deficit was nearly 34 percent higher than October of 2018. Last year, the opening month added "only" $100.5 billion to the overall debt. Last month, it added $134.5 billion.
And we're off. Going backward.
Far from cutting spending, the government is increasing it. Last month, as compared to the previous October, spending went up 7.8 percent. But that's the passive way to put things. The more active way: Your government leaders spent 7.8 percent more. All the while revenues fell a few percentage points.
This is like something from an old horror show, something like The Blob. It keeps growing and growing, eventually coming for us all.
But if you want real horror, think about what happens when the United States government finally prints too much money and dollars become worth less, if not actually worthless. That's when inflation will kick in. And prices will increase for everything, from a gallon of milk to a house in a nice subdivision. And retirement savings won't amount to as much in our old age. And foreign investors won't fancy dollars as much, and will require more interest to buy them. Which will add to how much taxpayers will spend to finance the debt ... .
Economies can spiral down, too. This national debt, and the monthly deficits that add to it, will teach us all that lesson one day. Bank on it.
Editorial on 11/16/2019