12 November 2013
As “Fiscal Conservatives,” we take issue with how the “Conservative” side of American politics looks at deficit spending and debt. Here’s why:
Every year, our family takes in a certain amount of money as “income.” A portion of that income, we use to make “capital improvements” and “investments.”
A portion of funds employed for capital investments constitutes down-payments for new real estate properties, for which we take out mortgages.
If One Were to Look at selective parts of our family balance sheet, one might see:
Deficit Spending: We have added 80% of “spending” in relation to the 20% down-payment
Increasing Debt: We have added that 80% of “debt” to the balance sheet. This debt addition may be offset by total reduction of principal on all mortgages.
Over more than three decades of such “deficit spending,” our debt-to-equity ratio is less than 50%.
Any political “Conservative” might say that we are “spending” ourselves to ruin, and that we risk leaving a mountain of debt to our children and grandchildren.
Our children don’t mind.