Many people are confused and worried about the federal spending ; the nation is in debt, why does the government use money when the nation is bankrupt?
I will use a very simple example to makes sense of the philosophy behind the concept of spending and saving money at the same time.
I will use a family as an example:
If the nation is a family with two parents and three children and the parents do not have any job, they will not have any money to spend, and they use as little as possible, they only buy what is necessary. However to continue and save from nothing will not improve the family’s life, it will make it worse and when the unemployment funds stop, they have nothing to support themselves. They have to rethink their options, maybe they will have to move to another state to find a job and maybe invest in a new education since there aren’t any jobs in their field. When this is the case, they will need to borrow money to spend for the education and they need money to move to another state. The family is cutting down on spending, but they are using money for education and moving. Their situation requires using as little money as possible but at the same time they are making huge investment and are spending money they don’t have, maybe it’s the most expensive investment they have ever taken on. This is their only option at this point.
When the nation is in the same situation, the same hold true, except that they have to be more active to create jobs and invest. A main difference between a family and a nation is the huge influence the government and its politics have on the individual.
Why didn’t the federal investment work in USA?
In the past, western countries have tried to infuse money into poor countries in Africa and South- America as an attempt to improve the life of people living in poverty. When this hasn’t worked, the cause of the problem has been linked to corruption. When money is not going where it’s supposed to go, the reason is always linked to corruption (impairment of integrity, virtue, or moral principle). Corrupt people and corrupt organizations write the laws making it legal for them to steal other people’s properties, money and values.
It’s unusual to have corruption at this level in western society. The tactics and problems are mostly connected to developing countries. It just doesn’t make sense to have corruption in an open, developed, educated and wealthy nation. Maybe that’s why the problem hasn’t been addressed or recognized? How can anyone expect to find this type of behavior in a seemingly functional society?
It’s time for greatness — not for greed. It’s a time for idealism — not ideology. It is a time not just for compassionate words, but compassionate action .Marian Wright Edelman
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