The Best Summary Ever.........

[get_involved]

Check the household comparison when they take away 8 zeros from the national debt status.

Two days ago Congress, with the Presidents urging continued a tax break for 162 million workers. Another loan from China I presume.

The Best Summary Ever:

Why the U.S. credit rating was downgraded:
. U.S. Tax revenue: $2,170,000,000,000
. Fed budget: $3,820,000,000,000
. New debt: $ 1,650,000,000,000
. National debt: $14,271,000,000,000
. Recent budget cuts: $ 38,500,000,000

Let's now remove 8 zeros and pretend it's a household budget:
. Annual family income: $21,700
. Money the family spent: $38,200
. New debt on the credit card: $16,500
. Outstanding balance on the credit card: $142,710
. Total budget cuts: $385

Got it?
OK now Lesson # 2:
Here's another way to look at the Debt Ceiling:

Let's say, You come home from work and find there has been a sewer backup in your neighborhood....and your home has sewage all the way up to your ceilings.

What do you think you should do?
1. Raise the Ceilings, or
2. Pump out the sewage

Your Choice is coming November 2012.

 

[Clementine]

Great example! Of course, if some people rely on welfare and have never earned income, paid bills or had to stay within a budget, they won't get this. And the liberals think they'll never run out of other people's money because they are ignorant of history.

 

[Luddly Neddite]

Its reeeel catchy and cute and all that but no, its not a good example at all because the government is not a household.

But, if you feel its valid, remember that Paul Ryan's so-called "plan" will cause an increase of $7TRILLION in "sewage".

 

[ladyliberal]

Your observation is interesting (although I'd like to see a citation). However, I think you left off an important number: the total assets in the US (which includes private assets) number in the hundreds of trillions of dollars (Total Assets of the U.S. Economy $188 Trillion, 13.4xGDP : rutledgecapital.com). That means your "household" has millions of dollars of capital available to it. And in fact, this number in fact ignores a number of financial assets. So the US is something like a millionaire losing tens of thousands of dollars a year through federal deficit spending. That doesn't seem good, but it's a much different scenario than the one you suggest.

 

[LoneLaugher]

Careful............we are supposed to think and say we are broke.

 

[get_involved]

Its reeeel catchy and cute and all that but no, its not a good example at all because the government is not a household.

But, if you feel its valid, remember that Paul Ryan's so-called "plan" will cause an increase of $7TRILLION in "sewage".

OK, your vote is for raising the ceilings.