How many times have I asked readers to take a cold shower at www.usdebtclock.org ?  That website shows the spiraling problem of increasing debt.  It is frustrating, frightening and maddening!

But wait!  The budget deficit for the Federal government’s fiscal year that just ended was “only” $439 billion — the smallest deficit  since 2007!  That is great progress!  There’s your positive feedback . . .

But, once you look into the details, it is not so positive.  The deficit is decreasing for the wrong reasons.  It is decreasing because the economy is growing, not because of governmental spending restraint.  While it is certainly not unimportant that the economy is growing, that smokescreen does make it easier to avoid dealing with the obvious spending inefficiencies.  It is not just the total number of dollars spent but also what those dollars are spent on!

No matter what the problem is, the answer is always the same . . . more revenue!

Medicare premiums are about to jump.  It is easier to increase premiums than, for example, to stop spending 40% of all lifetime medical costs during the last ninety days of life.  Saying yes to more revenue is easier than saying no to spending.

As a financial planner, clients always scream when I tell them to spend less.  After all, everything we buy is a necessity, isn’t it?  Unfortunately, that is true for both individuals and nations.  Can we really expect our government leaders to eliminate spending when we cannot do it ourselves?