The following video from The Center for Freedom and Propserity was released this week and it is very timely when we consider the recent report in The Tribune Business that; "The Government’s fiscal deficit increased year-over-year by 37.5 per cent or $17.4 million during the first two months of its 2010-2011 financial year, hitting $63.8 million, as both revenues and spending continued to move in the wrong direction."
As the brief introduction to the following video points out; "Politicians and interest groups claim higher taxes are necessary because it would be impossible to cut spending by enough to get rid of red ink. This Center for Freedom and Prosperity video shows that these assertions are nonsense. The budget can be balanced very quickly by simply limiting the annual growth of federal spending."
As Dr. Mitchell pointed out when he gave permission to repost the video here; "The lesson applies to all governments. Restrain spending so private GDP grows faster than the budget."
