Many people get excited when it is reported that “we” are getting some “federal funds.” But do we consider where “federal funds” come from?
There was a recent news report from The Brookings Institution in Washington that people in the Chattanooga area got “federal funds” in 2008 equivalent to $1,480 for each local resident.
Who paid for that?
Most of the money came from federal taxes — that Chattanooga area people and others throughout our country — had to pay. But that wasn’t enough.
The federal government had to borrow the rest.
The national debt is around $12.5 trillion — and growing fast. “We” have to pay taxes to cover the cost of interest, as the debt grows.
There’s no such thing as “free federal funds.”