Author Topic: Government Day-to-Day  (Read 13996 times)

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Offline wilber

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Re: Government Day-to-Day
« Reply #255 on: March 12, 2020, 09:01:51 pm »
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Think about it this way:  if you're 12 and your only income comes from doing chores around the house, $200 is a big debt that will take forever to pay off.   If you're a grown-up with a decent job, $200 is easily manageable. Most of us accumulate and pay off $200 or more of credit card debt every month. The size of the debt relative to our income is what's most important.

And if that kid takes a 20% cut in what he is making from doing the chores, he still owes $200.

In a recession, revenues (GDP) go down while deficits and debt go way up because not only does government not have the revenues but it has to spend much more to stimulate the economy. That's something these debt to GDP shills either don't understand or care about.

"Never trust a man without a single redeeming vice" WSC