Sunday, January 18, 2015

Steve's barking; who benifits from a balance budget, and a decrease deficit

Who benefit's from a balance budget. If governments are in the black with their government spending many a person believes that this is a good thing. After all the less government borrows the cheaper it is for private enterprise to borrow. Good thing right?
Question why should private enterprise need the money to borrow, after all those who depend on government for some type of monetary assistance will have less money.  Less money for Defence contractors, why would they need more money to borrow. Less money for government workers, and or less workers. If they have the same money or less they have less inclination to buy good or services from those private companies. If you can't sell your product why would a company feel the need to borrow at a low rate.
What about those poor banks that will make less money. Would all those investors sell their stocks in the banks after all those banks would not be making a lot of money if they make money at all.
What about all those government bond holders that need to roll their bonds over, they would not be to pleased that they can't get new ones to replace them, or the interest rate might even be in the negative territory?

No comments:

Post a Comment