• Why the Government Should Budget Like the Rest of Us

  Filed under Budget, Politics
  Jan 26

  You may have read my previous post on how to make a budget from October. It clearly outlines the steps to take when making your own personal budget. This is important to do so that you avoid debt. Spending less than you earn is a fundamental aspect of managing your finances. So why does Uncle Sam spend trillions of dollars to many each year?

  You may be familiar with the term deficit spending. This is when the government spends more than it brings in. Surplus spending is when the government spends less than they bring in, which is the ideal situation. This is the situation in states like Texas, West Virginia, Nebraska and others. The deficit situation is in states like California, Georgia and Florida.

  We can find examples of responsible people and governments as well as people and government who are not so responsible. The problem is this- the United States Federal Government is the most financially unstable and irresponsible entity in the world. President Obama has already promised 1.2 trillion dollars in deficit spending in his first year alone. He also said this would be the case for “many years to come.”

  Why is this a problem? Because the money the government is spending is borrowed money. Most of it is borrowed from China. What happens if China decides to cash in on all that money we owe them? The government either a) goes bankrupt or b) prints many boat loads of money and sends that to China. Neither case is great as either the government collapses or super inflation makes our entire society collapse.

  And this is why the government should try and budget like the rest of us. Why do they get to spend trillions more than they bring in? I can’t get more than a few thousand dollars in credit to spend. The reason is creditors want to get paid back. If foreign governments were smart, they would be limiting our government’s credit to something we may actually be able to pay back in the future. Instead we’re spending and spending and spending so that we can get out of our current problems and cause countless more for the future for someone else to deal with. God bless America…

  Tagged as: Budget, Politics
  
  No Comments

Leave a Reply

Name (required)

Mail (will not be published) (required)

Website

CAPTCHA Code