I'm sure most of you are sick and tired of hearing all the bickering over the debt and deficit and over spending cuts and the sequester. The problem with the federal gubment and its debt is that it is so large that the average person, especially the LOW INFORMATION voter is unable to grasp it. I would like to break things down onto a personal level that hopefully will make things more understandable.
First of all let's say that at the Grouch's house the total amount of money that I owe is $165000.
My income for the upcoming year 2013 is going to be about $29000, but I am planning to spend in the year 2013 about $38000. This means that I will incur a deficit of around $9000 which I will have to add to my $165000 of debt.
Well it is obvious with a debt of $165000 and no end in sight that cuts need to be made. At the Grouch household we come up with an ingenious idea to trim a hefty $440 from the budget and for the next couple of days sweet Wifey and I go around patting ourselves on the back for our fiscal responsibility. Yes indeedy, we have cut a hefty $440 out of out $38000 of spending! Pure genius!
Unfortunately, all the children and relatives who have been living with us and mooching off the Grouch start raising hell at the idea of cutting $440 from the budget. These cuts are "Draconian" they say and the household will absolutely collapse if these cuts occur.
After all the hell raising is done, nothing at all happens, deficit spending continues, and the debt continues to grow unchecked. The crafty Grouch proceeds to print some worthless counterfeit money to take care of next year's obligations.
My friends, this is kinda the situation faced by our federal gubment and our country. I don't blame Rush Limbaugh for being ashamed.
Understand my friends that essentially NOBODY in Warshington is interested in cutting spending. Even if the sequester happens, NOTHING will be cut. Regarding defense it simply means that instead of growing at a rate of 8 or 10 percent, it will instead grow at a rate of 6 to 8 percent. Nothing will be cut. Gubment will continue to grow. This is what we call baseline budgeting. To hear the politicians talk, we're headed for catastrophe.