Friday, February 27, 2009

Definition of a deficit...

It seems that the cool new thing to do is the herald someone for reducing the deficit. To all those heralders: deficit is not debt. When you reduce the deficit, you STILL have more money being spent than you are making. Debt on the other hand continues to pile up.

Perhaps it would be less euphemistic to so we are not accumulating debt as fast instead of saying we are reducing the deficit. Then it still sounds bad (debt), but is somewhat positive (not as fast).

A better idea would be to FIRST see how much money you legitimately have coming in, including savings and a buffer for unforseen expenses, THEN decide how much you can spend. That is how it works out our house. Apparently the government doesn't abide by my rules. I guess I am under the incorrect notion that the government works for me. Or not.

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