Financial Conservatism Does Not Work

Abstract

Perhaps in normal thinking there is nothing more natural and necessary than for a family to balance its budget. But when such thinking is applied to the national economy, this becomes not too functional. In fact, that kind of thinking, which has been popularized by certain political circles, is major evidence of ignorance about the power of the market mechanism and is therefore an enemy of economic progress. In fact, I consider this orientation a disease and I call it budgetitis.