Monday, May 11, 2009

50 cents of debt for every dollar of spending

Its almost unfathomable to me that people aren't getting this. From AP, with thanks to Andrew Taylor for putting this in terms that everyone can easily understand:

The government is currently adding 50 cents of debt for every dollar that it spends.

Let me see if I can put that into perspective.
Let's say that you make $30,000 a year.
This year, you spend $45,000. In one chunk. That's this year alone.
If you did that, and had nothing appreciable to show for your spending, what would you call yourself? Irresponsible? Reckless? Dumb?

The fact is that our deficit... not our debt, but our deficit... is 1.8 TRILLION dollars this year. Our spending? Roughly twice that.
How did we get here, folks?

By deciding that everything is a necessity for the government to get involved in.
By nodding our heads when the government says "Do you want us to buy you this?"

We got here by never having the common sense to realize that we are still going to have to pay for it.

Friends, Romans, countrymen, lend me your ear; or at least half of your current income in debt. Because that's what we are doing... today, in our government. And its going to drown this country.

We just confronted the fact that there were too many individuals buying homes that they couldn't afford.
The solution to this, by the current government?
Spending that increases the debt by 50 cents, for every dollar we spend.
That is not cool.

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