As a Certified Financial Planner, I've spent more than three decades asking people one simple question before they make a major financial decision."How are you going to pay for it?"It's a question every bank asks before approving a loan.It's a question every family should ask before buying a home.
And it's the question every voter should ask as democratic socialism gains momentum across America.You can vote for someone as president of student council who promises free lunch, no school on Fridays, and unlimited recess, but will those policies actually be put into place and will they be successful.Because every promise has a price tag.MAMDANI RIPPED FOR CLAIMING VICTORY OVER CAPITALISM AFTER NYC'S MULTI-BILLION DOLLAR TAXPAYER FUNDED BAILOUTSeattle Mayor Katie Wilson's is one of several leftist politicians making big promises.
(David Ryder/Reuters)Over the past few weeks, Democratic Socialist candidates have captured national attention with proposals that include government-funded childcare, free public transit, city-owned grocery stores, tuition-free college, universal healthcare, rent freezes, expanded public housing and significantly higher taxes on wealthy Americans.Many of these ideas sound compassionate.Some may even solve real problems.But good intentions have never balanced a budget, and we are woefully behind on that already.BLACKROCK CEO LARRY FINK 'WORRIED' ABOUT NYC UNDER MAMDANI, FLOATS INVESTING ELSEWHERE UNDER WEAKER CONDITIONSThe United States is already carrying nearly $40 trillion in national debt.
We continue to run trillion-dollar annual deficits.Interest on that debt is now one of the fastest-growing expenses in the federal budget, meaning taxpayers are spending hundreds of billions of dollars every year simply paying interest on yesterday's borrowing while not building roads, improving schools or strengthening our military.Now we're being told the answer is ...
more spending?Let's look at what happens when government promises more than it can...