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Show It's YOUR ; Business... Deficit financing consists of 2 parts: first, creating a deficit by overspending your income and second, sec-ond, making up differences by issuing is-suing additional securities (IOU's) But what about the effect of the policy of deficit financing? Here are some of the ways in which this policy levies its costs against your present and your future fu-ture living: Deficit financing reduces the value of the insurance policy you hold by reducing the purchasing power of the money it represents. Reduces Values . . . Deficit financing goes through your safe-deposit box and reduces the values in it without opening the box. Deficit financing reduces the value of every savings bank deposit de-posit without changing the credits cred-its in your bank book. Deficit financing robs all the elderly who, in the sunset of life, depend on"fixed incomes or annuities annui-ties and who lack the strength to re-enter the ranks of workers. Selfish Plan . . . Deficit financing reduces the value of trusts for old and young, for retirement or for education. Deficit financing in peacetime is a selfish plan to enjoy privileges and immunities in the present, at the expense of our children and our grandchildren in the future. It reduces the amount of groceries the housewife can purchase by increasing in-creasing their prices. It raises the costs of shoes and clothing by increasing the costs of the farmer who supplies cotton, wool and leather. Deficit financing invalidates even the wage increases increas-es of labor, by reducing the purchasing pur-chasing power of the money with which the increases are paid. |