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Obama says it, Dick Cheney said it before him... but they're wrong.

"Try a spending surge, because deficits don't matter", said Barack Obama, President Elect (as of Dec 22, 2008)

Ask the credit card companies. You charge something on your credit card and don't pay, then you end up with a giant company like Citigroup / Citibank doing horribly because you have a LOT of individual people and businesses who ALSO have been thinking that.

Ask your banks. They've been lending money to commercial businesses who believed that deficits don't matter, to people with mortgages who say, "Let my house go into foreclosure - the Federal Government will take care of me".

Ask the family member that has a couple more dollars than most of the family, and the rest of the family is always hitting him/her up for money.

A Deficit is DEBT. DEBT DOESN'T MATTER? Debt certainly DOES matter.

Aunt Irma or Uncle Bernard might be able to bail you out, or you and your kids can move into your mother's family home when you can no longer afford the mortgage.

The Banks and the automobile industry might be able to ask the Federal Government for cash.

Next, it'll be the newspapers asking for a bailout.

But where does the federal government get money?

The feds don't have an Aunt Irma to get money from, or do they?

Well, here are two places:

1) THE IRS Small businesses will get CHOKED by the IRS to help them be able to pay back these big loans.

2) Other countries! The USA routinely borrows money from other countries. Even ones we're at war with. They lend money to us, so we can pay the car industry money to be able to pay their workers and keep building cars. (and pay their executives, ugh).

Each man/woman/child in the USA "owes" the fed govt $35,000 for all of these bailouts. By next year, it'll be $40,000 EACH. And believe me, if not today, but at some point, this money WILL come from us or from foreign investors.

But what happens when all of the countries run out of money? Where does the buck stop?

Do we borrow money from other planets?

I think to any extra terrestrial would find the Planet Earth to be a horrible credit risk.

Deficit doesn't matter? Try spending? So crazy it just might work?

No. You party today, lose a house tomorrow. Party today, and the country goes bankrupt tomorrow.
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Simplify3 on Dec. 22 2008 edit · delete
Why Obama can't create jobs without destroying others? More about the Broken Window Theory.

Frédéric Bastiat says, way back in 1850. He explained the fallacy as follows: Imagine some shopkeepers get their windows broken by a rock-throwing child. At first, people sympathize with the shopkeepers, until someone claims that the broken windows really aren’t that bad. After all, they “create work” for the glassmaker, who might then be able to buy more food, benefiting the grocer, or buy more clothes, benefiting the tailor. If enough windows are broken, the glassmaker might even hire an assistant, creating a job.

Did the child therefore do a public service by breaking the windows? No. We must also consider what the shopkeepers would have done with the money they used to fix their windows had those windows not been broken. Most likely, the shopkeepers would have ploughed that money into their store: perhaps they would have bought more stock from their suppliers, or maybe they would have hired new employees. Before the windows broke, the shopkeepers had intact windows and the money to purchase more goods or hire new workers. After the windows broke, they had to use that money to repair the windows, and thus were unable to expand their business.

Can you create jobs? Sure. But by creating new jobs with the purpose of reducing the oil industry, then all of those people who work for the oil industry will THEN be without jobs!

"Let's destroy the evil oil industry and create jobs that are green and good for the environment". It sounds fantastic EXCEPT FOR THOSE PEOPLE WHO WILL THEN LOSE THEIR JOBS. And who will the new jobs go to? Probably a lot of the same people who will have lost their jobs in the oil industry, but who have the technical experience related to energy. But most of them will go to people who install windmills, solar panels, etc. 5 million new jobs? Not without destroying 20 million old jobs.
RS on Jan. 21 2011 edit · delete
It seems for all the finger pointing at Pres Obama that the real problems can be seen right there at home, in your own backyard. How many millions has Naples FL spent that they don't have ? ?
Udut, Kenneth on Jan. 21 2011 edit · delete
Oh, believe it or not, I like pres obama. He set somw darned lofty goals and certainly is trying to reach them. But I just wish there would be cuts in, say, the salaries of our representatives and senators, a cap on spending for projects, more real community initiatives to help improve things. Ideals are great, a little hope is fine. But there shouldn't be so much hope that ppl feel they can kick back and say "obama will fix that" and not do anything themselves to help.

We can't balance the budget, but we can look at our own spending habits before shifting the socia security monies around,etc. Every prez need to do that, but they never do - and I suppose their hands are tied.
DEFICITS DON'T MATTER?  WRONG, Obama. Obama says it, Dick Cheney said it before him... but they're wrong.