A Cautionary Tale

We talked about this last week.  And, I see that it's back in the news this week.  It appears that the Saudi government, faced with falling oil revenues, is having to cut back on public sector salaries and other cash payments to their citizens.

A lack of taxes, a big public sector, subsidized fuel and abundant government spending are benefits that officials have long cautioned are unaffordable, yet are seen as a right by many citizens because of the kingdom's high oil output.

It's a cautionary tale of government excess, and what happens when the money runs out.  Before you start feeling sorry for the Saudis, or smug about their pain, reflect on our national budget and our national excesses, and what happens when the money runs out and we have to start cutting back on freebies.  Like free phones, free this, free that, and subsidized everything-else.

What can't go on forever, won't.   Eventually, the bill comes due.