Economics has been dubbed the “dismal science,” which reflects more on its practitioners than on the actual science. One of the most basic rules of economics cautions us that we can’t continue to forever spend more than we take in. As individuals, we all must learn that standard, even if we have to learn it the hard way. Apparently, however, most elected and appointed officials in Washington, D.C. only pay lip service (if that) to their spending problem.

One recent Presidential proposal would pay every qualified adult citizen a one-time $5,000, as a “dividend” from our economic success. I believe this to be a horrible idea. Many will disagree, I’m sure. Let me explain.

On an annual basis, the U.S. Government dramatically overspends its income. For illustration, I used the value $1 trillion (12 zeroes) as the average annual deficit (overspending). By definition, that government cannot “pay for” anything new, as every subsequent dollar spent must be borrowed from somebody. Additionally, unearned money in the economy is inflationary.

The obvious solution to this situation would be to gradually eliminate some spending, then to not replace that spending. Economic growth, increasing population, and inflation would gradually balance the annual budget. Balancing the budget this way would take quite some time, depending on the magnitude of annual net spending reductions.

Anyone who is paying attention to the nation’s Capital City knows that this will never happen. The best we can hope for is to gradually reduce the annual deficit. At the household level, that would require a spending reduction, but in Washington it means increasing revenue (read: raising taxes). That approach is counterproductive and reduces prosperity.

No reasonable proposal for an additional $1 trillion in spending in the form of a so-called “dividend” could help the situation. Every penny (oops, every nickel) would have to be borrowed. When borrowing occurs in the short run, interest must be paid on that borrowed money forever. Often, the lenders are foreign governments and banks, who get richer as we get poorer.

Individually, Americans might expect to benefit by receiving this “dividend,” as inflation has eaten up any income increases most working or retired people have incurred. But receiving money that will simply fuel further inflation makes no sense. Talk about shooting ourselves in the feet! The proposed “dividend” would cost more than our annual military budget. Bad idea, terrible timing.

I understand that I may not be making many friends espousing my opinion on this proposal. Hoping to not come across as hypocritical, should the government choose to send me $5,000, I won’t send it back.