US GOVERNMENT SPENDS MONEY AS IF THERE IS A CRISIS:
US government spending as a % of GDP is now ~43%, in line with THE GREAT FINANCIAL CRISIS. This is just 1 % below World War II levels. Only the COVID crisis saw higher expenditures as a share of GDP of 54%. Unbelievable
..this is how Govts can stall the arrival of recession, via Govt stimulus.
..but eventually they are borrowing from the future to sustain and alleviate the present 'crisis'
..all spending via DEBT
..which all means that when you do this, at some point we stand to risk a larger recession and debt implosion than if we allow for shorter boom-bust cycles.
..its like a voracious credit card spender continues to rake up credit card spends, and the banker further increases his/her credit limit, so he/she continues to spend even more; rather than cutting the credit limit to force a 'deflation' in the spender's lifestyle, they have allowed the spender to rake up an enormous amount of debt that eventually renders him/her on the brink of bankruptcy.
..what is unsustainable never is. There is No Free Lunch. But in today's world, people live in the present and worry less about the future because they don't see as much hope in it (which is sad to say).
