Golden Rule

The Golden Rule, as it pertains to government spending, stipulates that a government will borrow to invest, not to finance existing spending. In other words, the government should borrow money only to fund investments that will benefit future generations, and current spending must be covered by existing taxes.

The term originates from ancient writings, including the New Testament, the Talmud and the Koran. Each has a story that teaches the Golden Rule: do unto others as you would have them do unto you. In fiscal policy, the Golden Rule seeks to protect future generations from debt by limiting borrowed money to investments, and not to indebt future generations for the benefit of current generations.

Investment dictionary. . 2012.

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  • Golden Rule — may refer to:*Ethic of reciprocity, the Golden Rule in ethics, morality, history and religion *Golden Rule savings rate, in economics, the savings rate which maximizes consumption in the Solow growth model *Golden Rule (fiscal policy), in… …   Wikipedia

  • Golden rule — Golden Gold en (g[=o]ld n), a. [OE. golden; cf. OE. gulden, AS. gylden, from gold. See {Gold}, and cf. {Guilder}.] [1913 Webster] 1. Made of gold; consisting of gold. [1913 Webster] 2. Having the color of gold; as, the golden grain. [1913… …   The Collaborative International Dictionary of English

  • golden rule — The golden rule is the most essential or fundamental rule associated with something. Originally, it was not a general reference to an all purpose first rule applicable to many groups or protocols, but referred to a verse in the Bible about… …   The small dictionary of idiomes

  • golden rule — golden rules N COUNT A golden rule is a principle you should remember because it will help you to be successful. Hanson s golden rule is to add value to whatever business he buys …   English dictionary

  • golden rule — n a very important principle, way of behaving etc that should be remembered ▪ The golden rule of cooking is to use fresh ingredients …   Dictionary of contemporary English

  • golden rule — the rule of construction that directs the person construing a provision, usually a statute, to read it according to the ordinary sense of the words unless, however, such a reading produces some illogicality or inconsistency. If this happens then… …   Law dictionary

  • Golden Rule — Golden Rule, The an idea from the Bible that people should treat others in the way that they want to be treated themselves …   Dictionary of contemporary English

  • golden rule — noun count an important basic principle that you should always obey when doing a particular activity …   Usage of the words and phrases in modern English

  • golden rule — ► NOUN ▪ a basic principle which should always be followed …   English terms dictionary

  • golden rule — n. the precept that one should behave toward others as one would want others to behave toward oneself: see Matt. 7:12; Luke 6:31 …   English World dictionary

  • golden rule — noun any important rule the golden rule of teaching is to be clear • Hypernyms: ↑rule, ↑prescript * * * noun, pl ⋯ rules 1 the Golden Rule : a general rule for how to behave that says that you should treat people the way you would like other… …   Useful english dictionary

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