In 2007 the government took in revenue of $214 Billion a month (average) and spent $227 Billion a month (average) creating a deficit of $13 Billion a month (average), or about $433 Million a day, $18 Million an hour.
In 2011 the government will receive revenue of $185 Billion a month and will spend $303 Billion a month creating a monthly deficit of $118 Billion a month, nearly $4 Billion a day, $164 Million an hour, nearly $3 Million a minute. See this story in today’s LA Times.
Every cent of that $164 Million an hour, $3 Million a minute, that the government spends in excess of its revenue is borrowed.
$0.40 of every dollar the government will spend in 2011 is borrowed. Could you do that? Yes, you could. For a little while.
Living on borrowed money is living on borrowed time.
Lower taxes would stimulate the economy, as the Stimulus didn’t, and would provide the government with enough money to do every one of its legitimate functions. It would not, however, provide Democrats with enough money to buy all the votes they need to remain in power.