I love this quote from Dave Ramsey that’s been floating around today.
"If the US Government was a family, they would be making $58,000 a year, they spend $75,000 a year, & are $327,000 in credit card debt. They are currently proposing BIG spending cuts to reduce their spending to $72,000 a year. These are the actual proportions of the federal budget & debt, reduced to a level that we can understand." - Dave Ramsey
I an not an economist by any means, but this obviously wouldn’t work out.
Where would I start if I had a magic government-changing wand?
Well, You know how government bills for funds always have a ‘projected increase’ every year? Then they make a measly ‘cut in spending’ that is really just a cut in the increase they would have otherwise had? That’s what I’d put an end to. No spending could have an increase year after year built into it, except maybe limited to inflation.
To go back to the household analogy, what if each year I said I was going to spend 5% more on my car payment than the year before, and my phone bill, and my satellite TV. And utilities, etc. It’s easy to see that in not very many years I would not have enough money.
So according to our government, the thing to then do is decrease the increase spending on one of those things to 4% or even 3%, and take out a loan for the rest.
Thanks for reading,