Budget deficits

   Budget deficits are a necessity. Taxpayers do not pay enough in taxes to run national expenditures. The entire second world war was paid by budget deficits and budget deficits have been the norm as long as americans have been alive.

  National expenditures such as military spending, social spending, and education are expensive. Taxpayers do not pay enough in taxes to pay for it. Thus every presidency ran budget deficits instead of raising enough in taxes to pay for national expenditures. Clinton ironically managed to run some surpluses during his presidential term. Although in the aggregate, he still ran deficits. It is quite remarkable he managed to run any surplus at all. I suspect there was a lot of money creation through Greenspan during the tech bubble before it popped. And the government was able to collect in tax revenue from that expansion in the money supply.

  Either way, running budget deficits for the most part is a necessity. If taxpayers actually had to pay for national expenditures, most would just end up refusing to pay.

 Just a reminder, tax payers do not pay for budget deficits. If they did, there would not be a budget deficit. A deficit, whether its trade or budget simply means it still has not been paid for.

 If I go to a lemonade stand and pay 40 cents for a 1 dollar worth of lemonade. That is a deficit of 60 cents. Because I refuse to pay the full amount, its a deficit.

  It might seem strange to some. You are probably asking. If the government does not have taxpayers pay for it. Then who pays for it? Use your imagination, but it is not the taxpayers.