Saturday, January 8, 2011

Explaining National Debt

For those who really don't take the time to follow politics it can all be so confusing... national debt, annual budget, national deficit... what do they all mean?

Here is an analogy that I hope will help explain some of what is happening now in our country;

Mary is a single woman planning her household budget. She owns a modest home and a nice vehicle, her income is $1,000 per month. She budgets her money to pay her mortgage, groceries, utilities, etc. and her expenses are approximately equal to her income. But, that isn't enough for her... she sees need around her and feels that she has to allot monies toward improving the lives of others.

While she is sitting at home planning her budget three intruders enter her home. One is very polite yet, nonetheless, a criminal entering her home uninvited. The second is a thief who gets to the quick work of packing up her most prized possessions. The third is a rapist who proceeds to do what he does best... terrorize and victimize. She starts thinking that criminals are discriminated against and it is unfair so, she decides that is where she will put her money. She offers to educate the intruders, pay for treatment for the rapist (he obviously is misunderstood and just needs treatment).

She doesn't have the money to do the things for these men that she has promised so, she goes to the bank and takes out loans in order to pay for them. This would all be good (although a bit crazy) except for her budget does not even allow for her to pay the interest on her loans which she is now taking out on a regular basis. So, she goes to her uncle Guido to borrow money to pay the interest on her loans. She gets along well with her uncle although she knows that not paying him back could be dangerous.

What will happen to this woman? What happens when her uncle demands payment? She will lose everything she owns, her world will be destroyed and she is doing it for what??

Mary's budget is our national budget
Her income is our national income
The difference between the two is the national shortfall
What she owes the bank is the national debt
What she owes her uncle is the national deficit
Her uncle is China
The intruders are illegal aliens

Liberals like to talk about helping our fellow man, about what is "right" but, isn't it right to take care of ourselves? Without taking proper care of ourselves, how can we possibly help anybody else?

1 comment:

  1. You can be a writer cause you say you are, but you can't use that same delusional reasoning when it comes to being a economist. Your analogy is ignorant at best, self-serving and trite at worst. First of all, to claim you're a christian, then compare taxes with rape, continually, is horrid. What kind or disgusting, cynical, hateful world do you raise your kids in. (And yes, I'm sure as a "writer," you noticed I ended a sentence with a preposition---hope you don't feel raped!)

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