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Sunday, February 7, 2010

Debt And Spending: Not The Same

Government spending and government debt are two entirely different things. Governments can build roads and bridges all day long without borrowing, by taxing only what is necessary to build them and not a cent more. Governments do need to spend, for many things. No one argues that. But they do not need to borrow to spend. Spending and debt are not necessarily linked, nor are they interchangeable terms

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