Government and money April 9, 2009

My dear friend Katie who is in grad school, asked one of her professors why governments do not in fact save up money for a rainy day. His answer, to summarize, is that taxpayers would get angry if they saw the government wasn’t using their money; they’d feel “over” taxed. Thank you Katie for your research. That actually leads me to a further thought: why doesn’t government just not OVER spend. Why don’t they live within their budgets?