Labour’s Hidden Debt — And How not to Fix It

Commentary Magazine ^ | June 30th, 2009 | Ted R. Bromund

[Jbny]

If the government wants to spend money on a program — presuming it’s unwilling to simply roll the printing presses — it must choose between two ways of acquiring the needed funds. It can borrow the money, or it can raise it through taxation. Neither source is ideal. The disadvantage of raising taxes is obvious. The disadvantage of borrowing stems from markets taking notice, and — if you do it often and irresponsibly enough — punishing you for it.