Operating On A Deficit

(I am working on a larger piece.  And this is simply me trying to understand what is going on.  I kind of think money is important and it is important to know how it is manipulated and what happens to our taxes.  In some countries we pay a lot, and, in theory we are supposed to receive stuff back for those taxes.  But we pay our taxes sometimes and then the Government says, “I’m sorry.  Because of a deficit you will not be benefiting from those taxes.  In fact, you must pay more and receive less services so we can send your moneys elsewhere.”)

I think economics is a very interesting subject. Money itself is a rather abstract concept. Yes, you can hold a Euro or a dollar in your hand, and you can buy your dinner with it, but what you are holding is a value system which represents goods and services. It can be manipulated, stretched, changed in form, borrowed, bought, sold, repackaged and presented in many different ways. So if someone says there is a deficit and certain amounts have to be re-allocated elsewhere, it cannot be taken for granted. Where is the money coming from? Where is the money being reallocated to, and can reallocation help to solve the problem of this “deficit”. In Canada, for example, there is a great difference between what the Canadian government owes the American government, because the US and Canada do not share the same monetary system, and how they manipulate their monies within their own system. I believe there has always been a deficit, but for decades the Canadian Government has been saying “We aim at balancing the budget within two years”. Yet the deficit remains and there are many different types of deficits, because there are many types of budgets.

The reality of the situation is the government is telling the people “You must work harder and receive less.” What is the rational behind this? The Canadian system has been operating in the red for years. How has it been doing this? I think people should figure out how it is they have been operating on a deficit for years, because money comes from somewhere and it goes somewhere even though the books are in the red. This deficit may simply be a convenient excuse to divert government moneys from the public sector into the private sector. Perhaps the entire government needs an audit.

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