Author Topic: Baker's QoTD - Simple Economics Edition  (Read 1836 times)

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Online Pandora

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Baker's QoTD - Simple Economics Edition
« on: March 16, 2011, 01:58:44 AM »
Joe Huffman from Saturday:

Quote
It is predicted the Federal budget deficit will reach $1.65 trillion this year with a $14.1 trillion debt and about $2.1 trillion in income. Yet the House cannot reach agreement on spending cuts. The House Republicans want to only cut $60 billion in spending and the Democrats only want to cut spending $6.5 billion. If you were to scale this down into numbers people might be able to relate to it would look like the following.


    If your family income were $50,000 then:


    •Family debt is $335,700
    •Family deficit is $39,300 (spending is $89,300/year)
    •The head of household wants to cut $1,430 in yearly spending
    •The spouse wants to cut $154.80 in yearly spending
    The children should cut up the credit cards and sell everything that isn’t the bare minimum needed for food, shelter, clothing, transportation, and communication. If the debt still isn’t being paid down they should consider selling their parents organs.—Joe
"Under certain circumstances, profanity provides a relief denied even to prayer." - Mark Twain

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Offline Sectionhand

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Re: Baker's QoTD - Simple Economics Edition
« Reply #1 on: March 16, 2011, 06:14:24 AM »
The problem is that when the situation is presented in a manner which everyone should be able to grasp , the dummies in congress and administration still don't get it .

It's like teaching card tricks to your dog .

Online Pandora

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Re: Baker's QoTD - Simple Economics Edition
« Reply #2 on: March 16, 2011, 06:21:02 AM »
Which is why I believe it useful to present the issue in easily understood terms.  If enough people understand, it won't matter what the dummies do or don't get.
"Under certain circumstances, profanity provides a relief denied even to prayer." - Mark Twain

"Let us assume for the moment everything you say about me is true. That just makes your problem bigger, doesn't it?"

Offline Libertas

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Re: Baker's QoTD - Simple Economics Edition
« Reply #3 on: March 16, 2011, 07:04:03 AM »
Joe Huffman from Saturday:

Quote
It is predicted the Federal budget deficit will reach $1.65 trillion this year with a $14.1 trillion debt and about $2.1 trillion in income. Yet the House cannot reach agreement on spending cuts. The House Republicans want to only cut $60 billion in spending and the Democrats only want to cut spending $6.5 billion. If you were to scale this down into numbers people might be able to relate to it would look like the following.


    If your family income were $50,000 then:


    •Family debt is $335,700
    •Family deficit is $39,300 (spending is $89,300/year)
    •The head of household wants to cut $1,430 in yearly spending
    •The spouse wants to cut $154.80 in yearly spending
    The children should cut up the credit cards and sell everything that isn’t the bare minimum needed for food, shelter, clothing, transportation, and communication. If the debt still isn’t being paid down they should consider selling their parents organs.—Joe

Heh, this is good!

First, in rough terms, if you're in a $335k house on just a $50k income, you are living waaaay past your means.
Second, the conclusion above is confirmed by the $39k current deficit (which you will incur each year and add to your overall debt level, assuming you have access to other credit sources and your income level remains static).
Third, either spending reduction option is in a word, useless.  It is a pathetic charade to even suggests such insignificant reductions.
Fourth, I'm all for the children divesting all assets, even their parents organs (since the most important one, the brain, is not even being used!) and GTFO Dodge!

In conclusion, these brain-dead parents (Congress & Prez) should be cut off by the children (the American people) and we are better off starting from scratch.  The simple inability to grasp the example above and its implications is a total indictment of the system.

I don't hold out much hope that the current crop as presently constituted truly 'get's it" or is likely to in the foreseeable future!
We are now where The Founders were when they faced despotism.