What if you spent money on a par with the feds?

Posted by KYFHO 11 years, 4 months ago to Economics
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Of course your credit would have been shut down way before it got this far.

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  • Posted by CircuitGuy 11 years, 3 months ago in reply to this comment.
    A family earns an after-tax income of $51k. It spends $60.5k a year, by borrowing a little from credit card, some years taking out a car loan, and some years taking money from a home equity loan. Their mortgage plus home equity loan total $300k.

    The analogy is a little flawed too because tax revenue isn't the same as "income". If we took total GDP as income, the numbers would start to look like a very average household. This is obviously not desirable.

    This is not a good scenario, but many people operate like this.
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  • Posted by CircuitGuy 11 years, 4 months ago
    Actually, I bet many families operate like this, which is not a good thing at all. In that way, politicians are representing their constituents. I have no idea how to bring back financial responsibility, but I think if society's general standards were more risk-averse our politicians would respond with more risk-averse fiscal policy.
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