Congress Should Keep up With the Joneses

If Congress does not raise the debt ceiling, the result will be no different than the Jones family deciding that they have maxed out their credit cards, and that if they continue borrowing and spending over their means, there will be significant pain to the family at best and bankruptcy at worst. The economics of government is no different. Mr. and Mrs. Jones want to be able to provide for themselves in their retirement and hopefully leave a little something after they are gone to provide a better life for their children and grandchildren. They understand living in the moment and not planning for the future is a plan for failure. The economics of government is no different. The Joneses know if they stop borrowing they will not become destitute, or default on their loan payments and obligations, because they will continue to work and earn income. (Just as the government will still take in tax revenue) They know that if they reallocate and budget, which includes paying the interest and...(Read Full Post)