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by fourspace 5436 days ago
No, they want spending to be less than or equal to revenues. That's the only rational way to run a business.
1 comments
JacobAldridge 5436 days ago
"That's the only rational way to run a business."

Actually, it's not - ask any business that's taken funding, borrowed to invest, or even run an overdraft as part of their low season. Spending less than or equal to revenues is one way to run a business, especially a small business that you only intend to grow incrementally (if at all). Borrowing to invest for faster growth is a very rational way to run a business in many situations (market opportunity, large personal vision etc).

Again, I'm just addressing the business analogy - here's my politics disclaimer http://news.ycombinator.com/item?id=2822770

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fourspace 5436 days ago
To clarify, I meant over the long term. If you're not making profits or at least breaking even over the long term (spending <= revenues), you're out of business.

The problem with the US is that they aren't just borrowing in a low season, they're borrowing every season.

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kwis 5436 days ago
If my business could borrow at the same rates as the US government I would take on as much debt as possible, in perpetuity.
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tomjen3 5436 days ago
But you would properly build or create something with it.

That is the problem the US have -- they don't create anything.

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