Quote:
Originally posted by reconmike
To all the people here that are saying live within your means to the government;
Do you have a mortgage? How about a few credit cards? Does that count as living within your means?
That seems to me like you are running a personal deficit.
A government that runs a surplus is taking too much of my money.
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I don't have a mortgage.
I have a few credit cards. Balances: 0.46 on a 8.9% APR, ~$3,000 on a 0% APR.
I currently ensure I have enough in my saving account to pay off my outstanding balances--I'm earning interest on money that has been lent to me by Discover, however, ATM.
All of my vehicles are fully owned.
My scenario certainly qualifies me as "living within my means."
Now, of course a government that is running with a surplus is holding "your" money. Actually, any money the government has is "your" money--even when we run a deficit.
All economic units, not just families, must save capital in "on" times in order to deal with the "off" times. One can not borrow more money than one is worth--unless a private lender wants to risk his or her money. Even your mortgage is based upon real property--not your word that you'll pay it back, and certainly not whether the market will become invigorated or compressed.