We’re spending more than we’re making
Saturday, September 26th, 2009Quick set of links regarding the economy. Both are opinion pieces, however they are written by staff members of familiar and somewhat reputable news sources (Bloomberg and CNBC). I know that this is some real doom-and-gloom stuff, but I honestly think there is truth in these dire articles. I view these articles as warnings and calls for action.
U.S. Debt Crisis May Cause ‘Fall of Rome’ Scenario
US May Face ‘Armageddon’ If China, Japan Don’t Buy Debt
Our nation’s budget is similar to a household budget, meaning that you can’t spend more than you make without going bankrupt. Unfortunately, United States debt is nearly 12 trillion dollars and our deficit is 1.4 trillion dollars. I’m sure you know that debt is the amount of money that you’ve borrowed and that you need to pay back. A deficit is a situation where you’re spending more money that you earn. Our nation’s debt is staggering, but the scariest part is that our budget deficit means that our debt will continue to grow at a damning pace. I am no economist, but the principles of this economic situation are rudimentary. Imagine spending your entire paycheck and then borrowing another $1,000 and spending that too. Could your family afford to spend more than it makes every month? How could any household pay off a massive debt while continuing to spend more money than it earns? It can’t.


