Wednesday, February 16, 2011
Government accounting is not the same as accounting for a business. The difference is government outlays are immediatley expenced and don't reflect the underlying asset. For example, the total cost of a new bridge is expensed right away thereby increasing the deficit. The underlying bridge asset may be in use for the next fifty years but this is not reflected in government accounting. The deficit reduction proposed by the parroting R is political theature destined to ruin America. America need more investment and not less. The deficit will be reduced once people are put back to work.