Borrowing money has a flip side, however. When you can't make your car payments, you learn that the bank really does own your car and will come take it away. When you borrow money from Guido for a "sure fire" business idea, you learn that Guido isn't such a nice guy if it doesn't work out. While equity investors can lose their investments, borrowers can potentially lose everything. When President Bush borrows $5 trillion dollars from other countries to run the government, he's really borrowing from future tax payers - making it seem like we aren't paying taxes, when we are really paying more taxes than we should, because he is borrowing irresponsibly. This is how Republicans make it look like everything is rosy on their watch, so they can hand enormous amounts of debt to the next administration, whose job it is to tighten belts and reduce spending until the borrowing is back under control.If you click on over, be sure to read "Godzilla's Tail."
Republicans do this because voters can see stock market indices much more clearly than they can see national debt figures. This is called paying your Visa bill with your MasterCharge, also known as Reaganomics. As Tom Friedman writes in the New York Times:
Never has one generation spent so much of its children’s wealth in such a short period of time with so little to show for it as in the Bush years.
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