The headline article in Tuesday’s paper, “Retail sales get a lift,” is an example of why we are in the financial situation we are in. News flash — you don’t get out of debt by spending more money! Americans and others, both as individuals and as countries, have been spending more than they make. We have been a borrowing nation for several decades and, as a result, our debt has grown.
But not only does the debt itself have a negative effect on our economy, the fiscal theories based on this debt keep us from getting out of it. As long as we think buying more retail items that are produced in other countries is a sign of a healthy economy, we are doomed to more of the same.
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