Subject: Re: Reversion to .....mean? S&P?
But to be clear, Reducing Spending is the way to solve our national debt problem.

Reducing WASTEFUL spending is ONE of the ways to solve our national debt problem. Raising taxes is of course another, but cutting the IRS is not a smart way to collect the taxes already on the books. What is going on currently wrt cutting spending is neither logical nor disciplined. I do not see any economizing of gov't expenses when it comes to what pleases Trump, like his weekend jaunts on the golf course which costs us taxpayers in significant security bills, not to mention padding his company income by the gov't paying for all of his entourage to fill his resort rooms. Or lets look at the use of US military planes to take a few deportees to their home country, at an astronomically higher price than the traditional use of airfare carriers like American Airline, etc. His talk of cutting expenses due to need to reduce the debt is more lies, rather than a true expression of what he is trying to accomplish, or he would reign his own spending of gov't funds in as well.

Debt is a tool, and not to be avoided entirely. We could buy properties without a mortgage, but currently hold a 30 year fixed rate mortgage at 2% while our cash earns 4.5%. I view a mortgage as an inflation hedge, and have bought multiple properties with a mortgage for that reason, rather than because we needed the mortgage to complete the purchase. We do not hold debt on depreciating assets, like cars, and so far our kids are doing the same. We use credit cards freely, but pay off in full each month and pay no interest, so freely is not only about the incidence of use, but about the cheapness of use. There is a time and place for debt.

Critical thinking includes watching to see how people walk their talk. If Trump is truly concerned about gov't debt, then he should be more careful with his own use of gov't funds.

IP