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Put It On The Tab, Joe - AMAC - The Association of Mature American Citizens

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5 min read
fairly easy
"Put it on the tab." It's a common refrain heard at bars and taverns. It's done when someone expects to incur lots of charges upfront but wil
l pay for all later, usually the same day. It's seen as easier than pay as you go or pay by the drink. If you aren't well known to the bartender or manager, you will likely have to leave your credit card to start a tab (i.e., credit). If you do know either well, your good word and/or past relationship of having "made good" may be enough to be allowed to take part in a spend now, pay later scheme.

The key point about this so-called tab (or bill), however, is it has to get paid. No loaner of money will continue taking part in a scheme where they either did not get paid or even think there is a possibility they might not get paid. Contrast that with our federal government, where Joe Biden and congressional Democrats insist on putting trillions in totally new spending "on the tab." It's just more deficit spending. Borrow more now, and someone else, namely future generations, will be responsible for paying it off later. What a scam. At least the drinker is the one who pays his own tab at a bar.

But it's important to note how bad things are already, even before a dime of new road and bridge infrastructure or even a dime of the so-called human infrastructure, essentially a socialist wish list should get passed. For the fiscal year that just ended on September 30, 2021, the federal deficit was $2.8 trillion. That is the amount spent above what was collected in taxes. It was the second-highest deficit ever, just under the 2020 total. In short, for the fiscal year 2021, $4.0 trillion was collected, and $6.8 trillion was spent, leaving the $2.8 trillion hole. The Bipartisan Policy Center analyzes and tracks the deficit each month, and an easy-to-read analysis is here.

Americans are probably unaware of the fact that we can only afford about 59% of all the federal government we now enjoy if it were strictly "cash only." With zero borrowing (i.e., no deficit spending), tax revenues of $4.0 trillion would allow for a mere 59% of the $6.8 trillion actually spent in the fiscal…
Amac, Jeff Szymanski
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