econ 101
Be prepared, I’m on a rant again.
The headline reads “$427 billion deficit projected for ‘05”. When I hear this number I hear it in the voice of Carl Sagan. It’s only $100 billion (Carl again) more than the White House projected for the year and, as indicated by an anonymous source, “conservative”. Overspending was not an accident, it didn’t surprise anybody. It was PLANNED!
Lets put this in simple terms. If you make $48,000 per year, you know that each month you can spend $4,000 and break even. This is a balanced budget. You won’t save any money. You also won’t go into debt. If however, you PLAN, on January 1, to spend $5,000 every month you will finish the year with a $12,000 deficit. To reduce this deficit, you’ll have to spend only $3,000 per month in the following year to break even. It’s a really simple concept yet our President and our Congress can’t seem to grasp it.
To make things worse, lets assume you plan to stick with your $4,000 per month expenditure but decide to voluntarily take a new job that only provides you with an annual income of $36,000. Where’s Einstein when we need him? Do the math; this sounds like another annual $12,000 deficit. It also sounds like tax cuts.
To make things even more exciting, assume you’ve stuck with your $4,000 per month plan, your new $36,000 job, and (drum roll here) you decide to visit cousin Vinny in Rome: only $3,000. Can you say, “Just charge it”? Your deficit grows by $15,000 due to new employment PLUS the amount of the vacation. Although nobody got killed on the vacation, this sounds like tax cuts and a war.
I’m not even going to go into the whole mess of borrowing the $15,000 from Thrifty Finance to pay your bills for the year. Yes, Thrifty Finance charges interest for allowing you to use their money. This INCREASES the amount of your deficit.
If you’re making any analogies to our national fiscal process by this point, you win the teddy bear.
I’m sick and tired of our fiscally conservative Republicans dragging out the Tax-And-Spend-Democrat label every election. I’m waiting for some Democrat or Libertarian or Green to start slinging the Borrow-And-Spend-Republican label. Show me someone with the cajones to call a spade a spade and I’ll vote for her or him! At least a tax-and-spend process can result in a balanced budget.
We don’t need Osama Bin Laden to ruin our economy, our President and Congress are doing a fine job of it.
The headline reads “$427 billion deficit projected for ‘05”. When I hear this number I hear it in the voice of Carl Sagan. It’s only $100 billion (Carl again) more than the White House projected for the year and, as indicated by an anonymous source, “conservative”. Overspending was not an accident, it didn’t surprise anybody. It was PLANNED!
Lets put this in simple terms. If you make $48,000 per year, you know that each month you can spend $4,000 and break even. This is a balanced budget. You won’t save any money. You also won’t go into debt. If however, you PLAN, on January 1, to spend $5,000 every month you will finish the year with a $12,000 deficit. To reduce this deficit, you’ll have to spend only $3,000 per month in the following year to break even. It’s a really simple concept yet our President and our Congress can’t seem to grasp it.
To make things worse, lets assume you plan to stick with your $4,000 per month expenditure but decide to voluntarily take a new job that only provides you with an annual income of $36,000. Where’s Einstein when we need him? Do the math; this sounds like another annual $12,000 deficit. It also sounds like tax cuts.
To make things even more exciting, assume you’ve stuck with your $4,000 per month plan, your new $36,000 job, and (drum roll here) you decide to visit cousin Vinny in Rome: only $3,000. Can you say, “Just charge it”? Your deficit grows by $15,000 due to new employment PLUS the amount of the vacation. Although nobody got killed on the vacation, this sounds like tax cuts and a war.
I’m not even going to go into the whole mess of borrowing the $15,000 from Thrifty Finance to pay your bills for the year. Yes, Thrifty Finance charges interest for allowing you to use their money. This INCREASES the amount of your deficit.
If you’re making any analogies to our national fiscal process by this point, you win the teddy bear.
I’m sick and tired of our fiscally conservative Republicans dragging out the Tax-And-Spend-Democrat label every election. I’m waiting for some Democrat or Libertarian or Green to start slinging the Borrow-And-Spend-Republican label. Show me someone with the cajones to call a spade a spade and I’ll vote for her or him! At least a tax-and-spend process can result in a balanced budget.
We don’t need Osama Bin Laden to ruin our economy, our President and Congress are doing a fine job of it.
posted by steve | 10:40 AM
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