Tuesday, April 12, 2011

Should government be prohibited from borrowing - from the Adam Smith Institute

An article over at the Adam Smith Institute (http://www.adamsmith.org/blog/tax-and-economy/government-should-be-banned-from-borrowing/)   questions the utility of government borrowing.   Clearly, a prohibition on government borrowing should be written into the Constitution as a hard limit on government.
 
Government borrowing is a moral wrong: no men have the right to set debts upon their children and grandchildren.    It is functionally equivalent to hereditary slavery.  It is wrong. 
 
The very idea of sovereign powers needing to borrow is absurd.  If you can create new money at will, why would you ever need to borrow?
 
The practice of government borrowing from banks is simply a scam that the banking elite has perpetrated: it amounts to a permanent transfer of wealth from the nation to the banking elite.   It is functionally equivalent to a tax or tribute payment.   Old habits die hard: the parasitic elite still acts as if it has the right to leech off the nation's wealth.
 
If government needs extra money, it can just print it out, plain and simple.    The idea of government borrowing from banks is archaic and retrograde, a relic of a previous barbaric age when people believed a nation's wealth was defined by its gold supply.   

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