Tuesday, September 9, 2008

Imagine if you ran your household this way

U.S has $407 billion deficit expected to go to $438 billion next year. This is before the Fanny Mae and Freddie Mac bail out that's expected to run in the hundreds of billions of dollars. Add to that the $9 trillion we already owe... well you get the picture. Anybody out there have a comparison to a family budget because I can't wrap my head around those figures?

It's only money right?


Distributorcap said...

yep...... only in america can you run your HH into the ground and get reelected or keep electing repubs

but have no fear - we will get out this -- we will print money!

Snave said...

It might be kind of like having $40K in credit debt, and continuing to spend usontil you're $45K in debt, then ... nope. I can't get my head around that one either! Heh...

Kathi D said...

But but but but . . . that can't BE! The Republicans are all about the fiscal responsibility! There must be a mistake!

MRMacrum said...

There is a reason I did not major in economics when in college. The intracacies and nunances of national and global economies make my head hurt. But I do remember a friend who explained to me once that deficit spending is a very handy tool to use in specific situations. To help end a recession, uh, when unemployment hits a cetain threshold, or to fund a war. All good times he said. Deficit spending can boost a struggling economy.

Okay, he's a banker and I am not. He should know about this stuff. But I wonder if our leadership, Republicans in particular, have begun to rely on this concept not as a go to policy when times are tough, but rather the go to policy just to generate money they do not have to fund things they want to have. And at the same time keep our tax burden low so they can continue to hold onto the delusion they are the lower taxes party. Win/win for the small government gang.

Well, what has been going on in the last 7 plus years is not in my opinion the right way to use deficit spending. Bush sent us the checks in the mail (which is another way to stimulate the economy) but essentially he paid for it with a credit card. I knew back then when the first one was about to find it's way into my mail box, we would end up paying for it in the end. And we have or will when and if we can ever catch up with the interest payments.

And now all the experts contend this most recent bail out is necessary and good. Necessary maybe, but who the Hell got us into this mess to begin with? Everyone wants to point the finger at consumers who bit off more than they could chew. Fine, but who was manipulating the figures, the facts, and fiscal policies that created this wild west atmosphere in the first place? "Oh we made a mistake. Never fear, our buds in the Congress will bail us out. They have to."