In the mid-1950s, Walt Disney did borrow some money to fund the building of Disneyland. In the late 1990s, Steve Jobs did borrow some money to fund new product development at Apple. But they were limited amounts and they were invested very carefully. The payoff was enormous. They both made it clear to their employees to be cost-conscious and then they maintained financial rigor even after they had great financial success.
Putting parameters on spending causes people to really think through how they will create more value for other people. These clear parameters cause people to become more innovative.
Today the United States federal government spends 40% more than it takes in every year. That approach has created a $16.3 Trillion debt. And because it has no real limit on how much debt it will carry it has, for all intents and purposes, no economic parameters on spending. Consequently, the same problems we’ve had as a country for decades remain in place with no innovative solutions coming forward. Not only are we forfeiting our future as a country, we are also robbing ourselves of the type of discipline necessary to truly innovate as a country. Quite literally the end of debt creation for the U.S. is nowhere in sight. We simply keep talking about the debt, not reducing it or putting in firm parameters.