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View Diary: America Should Balance Its Budget Just Like American Families Do (13 comments)

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  •  Should government be run like a family... (7+ / 0-)

    or a business?

    I'm confused because Republicans tell me both.

    You've skillfully shown the fallacy in their "family" debt bumper sticker.

    Let me toss out one to chew on regarding their "run like a business" mantra regarding debt.

    Corporate bonds are debts issued by industrial, financial and service companies to finance capital investment and operating cash flow. In terms of total face value of bonds outstanding, the corporate bond market is bigger than each of the markets for municipal bonds, U.S. treasury securities, and government agencies securities.
    Hmmm...seems businesses are not so debt adverse either.

    You're right, Mr. Left. They are totally wrong.

    •  The Republican party has become home to (7+ / 0-)

      instinct-driven people, people who react to prompts and have trouble thinking ahead. These characteristics make them good followers and, since their primary mode of behavior is repetition, predictable. However, on a personal level, their intellectual deficits render them practically incompetent. They may have the will, but when it comes to actually producing anything of value, there is no way for them to deliver--i.e. meet expectations and pay what is owed. So, the very idea of obligations scares them and they deny they even exist. They own, but do not owe. They have, but do not give. You could say they live on a one-way street. Reciprocity is not something they perceive. Indeed, it's likely that they don't perceive the environment, either, because, being self-centered, they don't see what's around them.

      It's possible that situational awareness can be taught. But I suspect that when people reach adulthood without it, it's too late.

      Then too, it's pretty clear that the financial community goes to great lengths to keep people confused. For example, the Federal Reserve refers to the money individuals owe as "Consumer Credit Outstanding"

      http://www.federalreserve.gov/...

      Note that Americans currently owe $2.7 trillion. That's a national debt, but from the perspective of the organizations to whom it is owed, it is a credit. It all depends on who's point of view is being presented.

      Also note that half a trillion of that is now owed to the Federal Treasury, mostly as a result of the acquisition of student loans -- i.e. the federal government has been buying them back from banks. That's why that debt has increased from a hundred billion in 2008 to over five hundred billion in 2012. That's five hundred billion on which banks are no longer collecting interest. Of course, if loans are to be forgiven to graduates who go into teaching, for example, that had to be done since banks aren't into forgiving loans.

      We organize governments to deliver services and prevent abuse.

      by hannah on Sat Apr 06, 2013 at 03:34:19 AM PDT

      [ Parent ]

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