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Old 04-05-2012, 11:39 AM   #966
Slava
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Join Date: Dec 2006
Location: Calgary, Alberta
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Quote:
Originally Posted by IntenseFan View Post
Where it becomes a problem is when a larger and larger portion of the budget is used to fund prior borrowings. Yes the government can take practically forever to pay it all back. But the more they borrow the more they have to pay in interest and when that starts to be at a level of 20 or 30 cents for every tax dollar that gets to be a huge problem.
Sure, but no one is advocating for that. The entire deficit at this point is a small percentage of the total budget; its far from unserviceable and yet we hear this line about how we're the next Greece.

Basically the extremists on this issue are extrapolating this years minor deficit and saying that if it continues like that forever we'll eventually run out of money. This might be true, but quite simply the plan isn't to pursue this course of action forever, for any of the parties in the election.
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