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Why do people think that the analogy between a family budget and the federal budget makes any sense?
ByNo family has the world reserve currency. Why do people keep falling for this idiotic comparison?
@ Ken B- You are one the dumbest people I have ever seen post on this website. You are the one that does not understand.
because they have no actual clue as to the actual purpose or function of the gov…
all you have to do is look at the horrible mess that so many states have gotten themselves in with their "balanced budget" amendments to see how bad of an idea it is to compare the two…
10 Comments
July 12th, 2011 at 6:21 pm
The conservative main stream media keeps pushing it.
In reality, they are very few similarities. It’s not even like running a business.
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July 12th, 2011 at 6:29 pm
Because you break it down as simple as possible – you do not spend more than you make.
If a Family does that, they end up in tons of credit card debt and are facing losing everything.
When the Government does that, they just crank out printing more money, devaluing the dollar and making all the little people (me and you) hurting by causing cost of goods (such as gas) to rise.
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July 12th, 2011 at 6:50 pm
Like a family, the US has obligations, which it must pay, or else nobody will loan it any more money. Like a family, if the US abuses its credit, it will backfire. Like a family, the US needs to cut back on useless expenditures. I could go on.
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July 12th, 2011 at 7:09 pm
because they have no actual clue as to the actual purpose or function of the gov…
all you have to do is look at the horrible mess that so many states have gotten themselves in with their "balanced budget" amendments to see how bad of an idea it is to compare the two…
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July 12th, 2011 at 7:53 pm
We’re trying to make it simple enough that even you can understand it but, I see you can’t.
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July 12th, 2011 at 8:38 pm
Here’s the irony of the day..
Because we didn’t treat the national budget like a family budget ( ie spend only what you can afford ) we NO LONGER HAVE THE GLOBAL RESERVE CURRENCY.
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July 12th, 2011 at 8:56 pm
The share of income going to pay interest is very very critical in both cases. We are on a path for interest payments to become the largest expense. We get nothing for these interest payments, no healthcare, no roads, nothing, zip, zilch.
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July 12th, 2011 at 9:31 pm
It makes a lot more sense than you realize.
Like a family, the federal gov’t should plan ahead for future needs and save money for when needed, like retirement and medical care. It should have a rainy day fund for when things go bad.
And like a family, it’s OK to run up some credit cards in emergency, but only for a short time, otherwise you start drowning in debt.
You are right though, a family cannot print more money, devaluing the currency and creating inflation. Only the government can do that.
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July 12th, 2011 at 10:19 pm
It’s not the same, just the ethics and morality of it.
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July 12th, 2011 at 10:29 pm
Families also can’t print as much currency as they wish either.
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