Michael S. Rozeff from Lew Rockwell

Think about this basic finance rule in terms of government spending.

"Any person or enterprise that has cash inflows and cash outflows reaches financial ruin when the cash inflows are not enough to pay the obligated cash outflows. Clearly the risk of ruin is lower when the entity has higher cash inflows, as from income and revenues, and lower cash outflows, as from spending and debts. Just as clearly, the risk of ruin rises when spending and borrowing are increased, while income and revenues are going lower."