A decent comparison of the US budget

#26
#26
lawgator1 said:
Got oversimplification ?
Click to expand...

Would a business analogy be any better?

Revenues: $2.17B
COGS: $3.82B
SG&A: $1.65B
Liabilities: $14.27B
Cut in operating expenses: $38.5M

Not sure this is a company I would want to loan money to, as it is VERY upside down. Yet sadly... we are all (edit: actually maybe half) continuing to invest in this company every day.
 
#27
#27
Why is everyone picking one picking on LG? He doesn't understand any solution that doesn't include raising taxes. No real surprise there.
 
#29
#29
That is in no way a "decent comparison".It is a horrible comparison. A household budget is nothing like our federal budget. Using this analogy is very simple minded and disingenuous. A household does not control the creation of its currency. Nor does money enter the economy without deficit spending. Does that mean rake up the budget stupidly and insanely? No. But it is intereting to see how much of the public buys into silly incorrect thinking politically and economically. We are not on a gold standard nor have we been since Nixon. But are leaders still think and act like we do.
 
#30
#30
nbakerld said:
What are you talking about? This is a horrible comparison. A budget is a budget, and it's simple math no matter the size. Any one of us can go to the corner store just like any competent person can balance a budget (no matter how many zeros). Nobody can/has traveled to Mars.
Click to expand...

John Carter has.
 
#31
#31
WG53 said:
That is in no way a "decent comparison".It is a horrible comparison. A household budget is nothing like our federal budget. Using this analogy is very simple minded and disingenuous. A household does not control the creation of its currency. Nor does money enter the economy without deficit spending. Does that mean rake up the budget stupidly and insanely? No. But it is intereting to see how much of the public buys into silly incorrect thinking politically and economically. We are not on a gold standard nor have we been since Nixon. But are leaders still think and act like we do.
Click to expand...
A household absolutely controls the creation of it currency, just as it controls the outflows. The main flaw is that the household isn't buying votes, while our system has made it the lone political end.
 
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#33
#33
BigPapaVol said:
A household absolutely controls the creation of it currency, just as it controls the outflows. The main flaw is that the household isn't buying votes, while our system has made it the lone political end.
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No households do not print their own money. Try again.
 
#37
#37
I think you needed to factor in the population who owns this budget. We're at 300,000,000 in the country now, so someone do the math, how many people are in our family?
 
#41
#41
VolsNSkinsFan said:
not sure what it has to do with inflation, but getting a credit card is about as close as you can come to printing your own money
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A credit card is a line of credit that some people do not need.
To some it is fun going out and buy things they cannot afford, then the collection calls start and the fun stops.
 
#42
#42
I just think that anyone with even a basic understanding of economics realizes that the concept of national debt is very complex and involves so much more than simply revenue and spending.

Therefore, this horrible analogy works quite well on the least educated.

Great.
 
#43
#43
Gramps said:
A credit card is a line of credit that some people do not need.
To some it is fun going out and buy things they cannot afford, then the collection calls start and the fun stops.
Click to expand...

gee thanks for clearing that up, I wasnt sure what a credit card was.
 
#44
#44
"spending more than we can afford or ever pay back without massive cuts or tax increases" is a complex issue?
 
#45
#45
VolsNSkinsFan said:
not sure what it has to do with inflation, but getting a credit card is about as close as you can come to printing your own money
Click to expand...

It may be as close as you can get, but since you incur debt it's not even close to the same thing. The US government does not go into debt by printing money. The source of the revenue is literally "thin air".
 
#46
#46
Do people realize what the government is actually doing when they "Print Money". Hint they dont actually fire up the printing presses and make more $100 bills
 
#47
#47
lawgator1 said:
I just think that anyone with even a basic understanding of economics realizes that the concept of national debt is very complex and involves so much more than simply revenue and spending.

Therefore, this horrible analogy works quite well on the least educated.

Great.
Click to expand...

What??!!! What else does it involve? Revenue - Spending = Deficit
 
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